Question
In: Accounting
Chicago contractors got $5,400,000 contract to construct a school building for the City of Chicago. Work...
Chicago contractors got $5,400,000 contract to construct a school building for the City of Chicago. Work on this contract began in 2013 and the financial data pertaining to this contract is available here. Cost incurred till Dec.31, 2013 $1,080,000 Billings made to City $1,000,000 Amount collected from City $ 750,000 The estimated future cost to complete this contract is $3,240,000.
(a) Prepare Chicago contractors 2013 journal entries using COMPLETED CONTRACT method. (b) Show how the contract accounts will appear in the Balance Sheet of Chicago Contractors on 12/31/2013.
Solutions
ekkarill92 answered 6 months agoRelated Solutions
On January 1, 2018, Grumpy Contractors agreed to construct a building at a contract price of...
On January 1, 2018, Grumpy Contractors agreed to construct a
building at a contract price of $5,000,000. Grumpy estimates that
the project will be finished in 2020. Information related to the
costs and billings for this contract are as follows:
2018
2019
2020
Total costs incurred to date
$1,500,000
$3,300,000
$4,400,000
Estimated costs to complete
2,500,000
1,000,000
-0-
Customer billings to date
1,200,000
2,700,000
4,400,000
Collections to date
1,000,000
2,500,000
4,400,000
Instructions:
Assuming the building was finished in 2020, calculate...
On February 1, 2010, Marcos Contractors agreed to construct a building at a contract price of...
On February 1, 2010, Marcos Contractors agreed to construct a
building at a contract price of $3,000,000. Marcos estimated total
construction costs would be $2,000,000 and the project would be
finished in 2012. Information relating to the costs and billings
for this contract is as follows:
? 2010?? 2011?? 2012?
Total costs incurred to date?$
750,000?$1,320,000?$2,300,000
Estimated costs to complete?1,250,000? 880,000?-0-
Customer billings to date?1,100,000? 2,000,000?3,000,000
Collections to date?1,000,000? 1,750,000?2,950,000
Instructions
1. Fill in the correct amounts on the following...
On February 1, 2010, Marcos Contractors agreed to construct a building at a contract price of...
On February 1, 2010, Marcos Contractors agreed to construct a
building at a contract price of $3,000,000. Marcos estimated total
construction costs would be $2,000,000 and the project would be
finished in 2012. Information relating to the costs and billings
for this contract is as follows:
? 2010?? 2011?? 2012?
Total costs incurred to date?$ 750,000?$1,320,000?$2,300,000
Estimated costs to complete?1,250,000? 880,000?-0-
Customer billings to date?1,100,000? 2,000,000?3,000,000
Collections to date?1,000,000? 1,750,000?2,950,000
Instructions
1. Fill in the correct amounts on the following...
On February 1, 2010, Marsh Contractors agreed to construct a building at a contract price of...
On February 1, 2010, Marsh Contractors agreed to construct a
building at a contract price of $5,800,000. Marsh estimated total
construction costs would be $4,000,000 and the project would be
finished in 2012. Information relating to the costs and billings
for this contract is as follows: 2014 2015 2016 Total costs
incurred to date $1,500,000 $2,640,000 $4,600,000 Estimated costs
to complete 2,500,000 1,760,000 -0- Customer billings to date
2,200,000 4,000,000 5,600,000 Collections to date 2,000,000
3,500,000 5,500,000
Instructions Fill in...
Splish, Inc. began work on a $6,312,000 contract in 2020 to construct an office building. During...
Splish, Inc. began work on a $6,312,000 contract in 2020 to
construct an office building. During 2020, Splish, Inc. incurred
costs of $1,589,940, billed its customers for $1,156,000, and
collected $894,000. At December 31, 2020, the estimated additional
costs to complete the project total $3,228,060.
Prepare Splish’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is...
Crane, Inc. began work on a $7,016,000 contract in 2020 to construct an office building. During...
Crane, Inc. began work on a $7,016,000 contract in 2020 to
construct an office building. During 2020, Crane, Inc. incurred
costs of $1,798,560, billed its customers for $1,125,000, and
collected $910,000. At December 31, 2020, the estimated additional
costs to complete the project total $3,197,440.
Prepare Crane’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is...
Stellar, Inc. began work on a $6,491,000 contract in 2020 to construct an office building. During...
Stellar, Inc. began work on a $6,491,000 contract in 2020 to
construct an office building. During 2020, Stellar, Inc. incurred
costs of $1,941,020, billed its customers for $1,138,000, and
collected $904,000. At December 31, 2020, the estimated additional
costs to complete the project total $3,304,980.
Prepare Stellar’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is...
Sarasota, Inc. began work on a $6,504,000 contract in 2020 to construct an office building. During...
Sarasota, Inc. began work on a $6,504,000 contract in 2020 to
construct an office building. During 2020, Sarasota, Inc. incurred
costs of $1,639,900, billed its customers for $1,300,000, and
collected $1,055,000. At December 31, 2020, the estimated
additional costs to complete the project total $3,650,100.
Prepare Sarasota’s 2020 journal entries using the
percentage-of-completion method. (Credit account titles
are automatically indented when amount is entered. Do not indent
manually. For costs incurred use account Materials, Cash, Payables.
If no entry is...
Concord, Inc. began work on a $6,466,000 contract in 2017 to construct an office building. During...
Concord, Inc. began work on a $6,466,000 contract in 2017 to
construct an office building. During 2017, Concord, Inc. incurred
costs of $1,547,340, billed its customers for $1,085,000, and
collected $1,013,000. At December 31, 2017, the estimated
additional costs to complete the project total $3,003,660. Prepare
Concord’s 2017 journal entries using the percentage-of-completion
method.
On 01 May 2015, the management of Netcare concluded a contract with Build-IT Building Contractors, in...
On 01 May 2015, the management of
Netcare concluded a contract with Build-IT Building Contractors, in
terms of which the construction company undertook to build one
Medical Suite Block, consisting of 50 suites of 3 rooms, a waiting
room, Doctors consulting room, reception area and kitchenette. The
contract stipulated that the building would be completed by 15
December 2015.
The contracting parties also agreed to the following:
a) If the hostels are not completed by
15 December 2015, Build-IT Building...
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