Clorad Corporation contracts with a customer to construct a building. It appropriately determines that it has...
Clorad Corporation contracts with a customer to construct a building. It appropriately determines that it has one performance obligation which is satisfied over time. Using the following information for Year 1:
|
Year 1 (of 4-year project): |
|
| Construction costs incurred during the year | $174,000 |
| Estimated costs to complete the contract | 426,000 |
| Partial billings to customers | 100,000 |
| Collections from customers | 25,000 |
| Total contract price | 1,000,000 |
Required:
|
Prepare the journal entries to record Year 1’s (a) construction costs, (b) partial billings, (c) cash collections, and (d) gross profit. GENERAL JOURNAL
|
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Clorad Corporation contracts with a customer to construct a
building. It appropriately determines that it has...
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In 2021, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to
the contract is as follows: 2021 2022 2023 Cost incurred during the
year $ 1,584,000 $ 3,240,000 $ 2,613,600 Estimated costs to
complete as of year-end 5,616,000 2,376,000 0 Billings during the
year 1,200,000 3,624,000 5,176,000 Cash collections during the year
1,000,000 2,800,000 6,200,000 Assume that Westgate Construction’s
contract with Santa...
Saved Help Save & MSK Construction Company contracted to construct a factory building for $525.000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows: 20x2 $150,000 Costs incurred during the year Estimated additional cost to complete Billings during the year Cash collections during the year 20x1 $290,000 145,000 260,000 240,000 265,000 285,000 Required: 1. Record the preceding transactions in MSK's books assumingit recognizes revenue over time and uses costs incurred to measure the extent...
lis the jorrnal entries for 2021,2022,2023
Saved Help I Contracts Required information (The following information applies to the questions displayed below) In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2023 $2,239,800 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,610,000...
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