Brief Exercise 18-22

Teal, Inc. began work on a $6,312,000 contract in 2017 to construct an office building. During 2017, Teal, Inc. incurred costs of $1,589,940, billed its customers for $1,156,000, and collected $894,000. At December 31, 2017, the estimated additional costs to complete the project total $3,228,060. Prepare Teals 2017 journal entries using the percentage-of-completion method.

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Account Titles and Explanation (To record costs incurred.) (To record billings.) (To record collections.) (To recognize revenue Debit Credit