Question
Recording Long-term Construction: Recognize Revenue at a Point in Time Mullen Construction contracted to build a municipal warehouse for the city of Dallas for $525,000.
Recording Long-term Construction: Recognize Revenue at a Point in Time Mullen Construction contracted to build a municipal warehouse for the city of Dallas for $525,000. The contract specified that the city would pay Mullen each month the progress billings, less 10%, which was to be held as a retention reserve. At the end of the construction, the final payment would include the reserve. Each billing, less the 10% reserve, must be paid within 10 days after submission of a billing to the city. Transactions relating to the contract follow. A. 2020 Construction costs incurred during the year, $140,000; estimated costs to complete, $280,000; progress billing, $133,000; and collections per the contract. B. 2021 Construction costs incurred during the year, $245,000; estimated costs to complete, $80,500; progress billings, $196,000; and collections per the contract, assuming revenue from the contract is appropriately recognized over time. C. 2022 Construction costs incurred during the year, $70,000. The remaining billings were submitted by October 1, and final collections were completed on November 30. Required Provide the 2020, 2021, and 2022 entries for (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) revenues and expenses, assuming revenue from the contract is appropriately recognized at a point in time. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Note: Do not round until your final answers; round your final answers to the nearest whole dollar.
A. 2020 Construction costs incurred during the year, $140,000; estimated costs to complete, $280,000; progress billing, $133,000; and collections per the contract.
B. 2021 Construction costs incurred during the year, $245,000; estimated costs to complete, $80,500; progress billings, $196,000; and collections per the contract, assuming revenue from the contract is appropriately recognized over time.
C. 2022 Construction costs incurred during the year, $70,000. The remaining billings were submitted by October 1, and final collections were completed on November 30.
Complete the following table.
Please Answer all of it and complete the table
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