The Fender Construction Company receives a contract to build a building over a period of three years

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The Fender Construction Company receives a contract to build a building over a period of three years for a price of $700,000. Information relating to the performance of the contract is summarized as follows:

Required
Prepare journal entries for all three years under
(1) The percentage-of-completion method, and
(2) The completed-contractmethod.

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Question Posted: Mar 10, 2012 06:41 AM

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The Fender Construction Company receives a contract to build a building over a period of three years

Question:

2007 2008 2009 Construction costs incurred during the year $150,000 Estimated costs to complete Billings during the year Collections during the year $242,000 $168,000 350,000 168,000 120,000 250,000 330,000 100,000 260,000 340,000

Step by Step Answer:

1 2007 2008 2009 Construction costs incurred to date 150000 392000 560000 Estimated costs to complete 350000 168000 Total estimated costs 500000 56000...View the full answer

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