Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please try to keep the same formats. i tried putting some answers in; if they're wrong please adjust. thanks! Please do B - E Required:
Please try to keep the same formats. i tried putting some answers in; if they're wrong please adjust. thanks! Please do B - E
Required: A. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. [Format for gross profit schedule is provided.] B. Prepare all necessary journal entries for 2021, 2022, and 2023. Format for journal entries provided.] C. Post all amounts to be entered into the 'Accounts Receivable', 'Construction in Process' and 'Billings on Construction in Process' accounts for all three years. ['T'account formats provided.] D. Prepare the closing entry for the contract. [Record with journal entries.] E. Show accounts and amounts that would appear in the Income Statement and Balance Sheet for 2022. [Formats for partial statements provided.] Practice Information: During 2021, Wilcox Company started a construction job with a contract price of $1,000,000. The job was completed in 2023. The following information is available Costs incurred to date Estimated costs to complete Billings to date Collections to date 2021 2022 2023 $ 280,000 $ 320,000 $ 800,000 420,000 320,000 800,000 350,000 550,000 1,000,000 250,000 500,000 950,000 B. General Journal C. General Ledger Date Accounts Debit Credit Construction in Process Billings on Construction in Proce 2021 Construction in Proceso Materials, Cash, Payables Accounts Receivable Billings on Construction Cash Accounts Receivable Construction Expense Construction in Process Revenue from Long-Term Contract 2022 Construction in Process Materials, Cash, Payables Accounts Receivable Accounts Reccivable Billings on Construction Cash Accounts Reccivable Construction Expense Construction in Process Revenue from Long-Term Contract 2033 Construction in Procede Materials, Cach, Payables Accounts Receivable Billings on Construction Cash Accounts Receivable Construction Expanse Construction in Process Revenue from Long-Term Contract D. 2033 E. Wilcox Company Income Statement For the Year Ending 2022 Wilcox Company Balance Sheet December, 2022 XXXX Revenue from Long-Term Contract Cost of Construction Gross Profit Current Assets Accounts receivable XXXX XXXX XXXX Inventory Construction in Process Less: Billings XXXX XXXX Cost and recognized profit in excess of billings XXXXStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started