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Smitty's Company is involved in a three-year long-term contract. The following data relate to this contract: 2014 2015 2016 Total Contract Price $ 200,000 Costs
| Smitty's Company is involved in a three-year long-term contract. The following data relate to this contract: | |||||
| 2014 | 2015 | 2016 | Total | ||
| Contract Price | $ 200,000 | ||||
| Costs incurred each year | $ 24,000 | $ 56,000 | $ 30,000 | $ 110,000 | |
| Costs incurred to date | $ 24,000 | $ 80,000 | $ 110,000 | ||
| Estimated cost to complete | $ 96,000 | $ 40,000 | $ - | ||
| Partial billings each year | $ 50,000 | $ 112,000 | $ 38,000 | ||
| Cash collected from billings | $ 35,000 | $ 120,000 | $ 45,000 | ||
| Prepare the journal entries for each of the following assuming Smitty's Company satisfies its performance obligation. | |||||
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
