Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina began work under contract #E2-D2, which provided for a contract price of $2,234,000.

image text in transcribedimage text in transcribed

Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2020 2021 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 -0- Billings during the year 413,000 2,234,000 Collections during the year 351,000 1,530,000 What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ e Textbook and Media List of Accounts Assuming the same facts as those above except that Pina uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2021? Revenue recognized in 2021 $ e Textbook and Media List of Accounts Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (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 tities and enter for the amounts. For costs incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit (To record cost of of construction.) (To record progress billings.) (To record collections.) (To recognize revenue.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CPA Exam Review Auditing And Attestation 2011

Authors: Patrick R. Delaney, O. Ray Whittington

8th Edition

0470554347, 978-0470554340

More Books

Students also viewed these Accounting questions

Question

=+21.16. For the density Cexp( -1x| "), - o Answered: 1 week ago

Answered: 1 week ago