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What would the journal entries for the following contract be using the completed contract and percentage of completion methods? Stoney Run Construction Company (US GAAP)

What would the journal entries for the following contract be using the completed contract and percentage of completion methods?

Stoney Run Construction Company (US GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below:

Year 1:

  • Sale Price: $2,800,000
  • Estimated costs: $1,600,000
  • Costs incurred to date (paid in cash): $400,000
  • Billed to date: $250,000
  • Received in cash to date $190,000

Year 2:

  • Sale Price: $2,800,000
  • Estimated costs: $2,000,000
  • Costs incurred to date (paid in cash): $900,000
  • Billed to date: $1,150,000
  • Received in cash to date $950,000

Year 3:

  • Sale Price: $2,800,000
  • Estimated costs: $2,000,000
  • Costs incurred to date (paid in cash): $2,000,000
  • Billed to date: $2,800,000
  • Received in cash to date $2,800,000

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