Question
Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a
Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows:
| 2019 | 2020 | 2021 | |
| Construction costs incurred during the year | $150,000 | $242,000 | $168,000 |
| Estimated costs to complete | 350,000 | 168,000 | |
| Billings during the year | 120,000 | 250,000 | 330,000 |
| Collections during the year | 100,000 | 260,000 | 340,000 |
Required:
| 1. | Prepare journal entries for all 3 years. |
| 2. | Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries for all 3 years. |
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HR Self Audits A Strategy For Continuous Improvement
Authors: Wynette Harewood, Marilyn Silverman
1st Edition
B0BQXT8R3P, 979-8843293192
