Exercise 134 (Part Level Submission)

Penner Builders contracted to build a high-rise for $28,300,000. Construction began in 2018 and is expected to be completed in 2020. Data for 2018 and 2019 are:

		2018		2019
Costs incurred to date		$3,630,000		$10,556,000
Estimated costs to complete		14,520,000		9,744,000

Penner uses the percentage-of-completion method.

(c)

Make the journal entry to record the revenue and gross profit for 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit