Windsor Construction Company began work on a $404,000
construction contract in 2020. During 2020, Windsor incurred costs
of $273,000, billed its customer for $232,000, and collected
$182,000. At December 31, 2020, the estimated additional costs to
complete the project total $163,660.
Prepare Windsor’s journal entry to record profit or loss, if any,
using (a) the percentage-of-completion method and (b) the
completed-contract method. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the amounts. Round answers to 0
decimal places, e.g. 5,275.)
No. |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
(a) |
enter an account title to record the transaction using the percentage-of-completion method |
enter a debit amount |
enter a credit amount |
enter an account title to record the transaction using the percentage-of-completion method |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the transaction using the percentage-of-completion method |
enter a debit amount |
enter a credit amount |
|
(b) |
enter an account title to record the transaction using the completed-contract method |
enter a debit amount |
enter a credit amount |
enter an account title to record the transaction using the completed-contract method |
enter a debit amount |
enter a credit amount |
Windsor Construction Company began work on a $404,000 construction contract in 2020. During 2020, Windsor incurred...
Splish Construction Company began work on a $418,500 construction contract in 2020. During 2020, Splish incurred costs of $285,500, billed its customer for $233,000, and collected $172,000. At December 31, 2020, the estimated additional costs to complete the project total $155,765. Prepare Splish’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
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Vaughn Construction Company began work on a $423,000 construction contract in 2020. During 2020, Vaughn incurred costs of $295,500, billed its customer for $200,500, and collected $170,000. At December 31, 2020, the estimated additional costs to complete the project total $155,645. Prepare Vaughn’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
Headland Construction Company began work on a $419,400 construction contract in 2017. During 2017, Headland incurred costs of $280,200, billed its customer for $216,300 and collected $174,500. At December 31, 2017, the estimated additional costs to complete the project total $161,600. Prepare Headland's journal entry to record proft or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
During 2020, Stellar Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $373,700 $749,360 $1,070,000 Estimated costs to complete 636,300 352,640 –0– Billings to date 302,000 907,000 1,620,000 Collections to date 268,000 815,000 1,425,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar amount...
During 2020, Pearl Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $396,000 $806,600 $1,080,000 Estimated costs to complete 594,000 283,400 –0– Billings to date 301,000 892,000 1,590,000 Collections to date 268,000 816,000 1,427,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar amount...
During 2020, Sweet Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $380,000 $847,770 $1,069,000 Estimated costs to complete 620,000 253,230 –0– Billings to date 302,000 896,000 1,610,000 Collections to date 272,000 812,000 1,418,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar amount...
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