Question
In: Accounting
A construction company has entered into a contract to build a parking complex. It hsa been...
A construction company has entered into a contract to build a parking complex. It hsa been estimated the complex will cost 700,000 and will take three years to construct. The complex will be billed to the purchasing company at 1,200,000. Information is as follows.
X1 YEAR. X2 YEAR X3 YEAR
cost incurrect to date 350,000 490,000 700,000
estimated cost yet to be incurrect 350,000. 210,000. 0
customer billings to date 300,000. 650,000 1,200,000
collections of billings to date 250,000. 600,000. 1,200,000
Prepare all journal entries s they realte to percentage of completion contract.
Solutions
ekkarill92 answered 8 months agoRelated Solutions
Kingbird Construction Company has entered into a contract beginning January 1, 2017, to build a parking...
Kingbird Construction Company has entered into a contract
beginning January 1, 2017, to build a parking complex. It has been
estimated that the complex will cost $594,000 and will take 3 years
to construct. The complex will be billed to the purchasing company
at $896,000. The following data pertain to the construction
period.
2017
2018
2019
Costs to date
$267,300
$463,320
$606,000
Estimated costs to complete
326,700
130,680
–0–
Progress billings to date
268,000
547,000
896,000
Cash collected to date...
Ivanhoe Construction Company has entered into a contract beginning January 1, 2017, to build a parking...
Ivanhoe Construction Company has entered into a contract
beginning January 1, 2017, to build a parking complex. It has been
estimated that the complex will cost $599,000 and will take 3 years
to construct. The complex will be billed to the purchasing company
at $905,000. The following data pertain to the construction period.
2017 2018 2019 Costs to date $257,570 $413,310 $609,000 Estimated
costs to complete 341,430 185,690 –0– Progress billings to date
270,000 551,000 905,000 Cash collected to date...
Teal Construction Company has entered into a contract beginning January 1, 2020, to build a parking...
Teal Construction Company has entered into a contract beginning
January 1, 2020, to build a parking complex. It has been estimated
that the complex will cost $597,000 and will take 3 years to
construct. The complex will be billed to the purchasing company at
$908,000. The following data pertain to the construction
period.
2020
2021
2022
Costs to date
$286,560
$453,720
$609,000
Estimated costs to complete
310,440
143,280
–0–
Progress billings to date
273,000
548,000
908,000
Cash collected to date...
Sheffield Construction Company has entered into a contract beginning January 1, 2020, to build a parking...
Sheffield Construction Company has entered into a contract
beginning January 1, 2020, to build a parking complex. It has been
estimated that the complex will cost $595,000 and will take 3 years
to construct. The complex will be billed to the purchasing company
at $903,000. The following data pertain to the construction
period.
2020
2021
2022
Costs to date
$279,650
$487,900
$606,000
Estimated costs to
complete
315,350
107,100
–0–
Progress billings to
date
272,000
545,000
903,000
Cash collected to date...
Waterway Construction Company has entered into a contract beginning January 1, 2020, to build a parking...
Waterway Construction Company has entered into a contract
beginning January 1, 2020, to build a parking complex. It has been
estimated that the complex will cost $600,000 and will take 3 years
to construct. The complex will be billed to the purchasing company
at $901,000. The following data pertain to the construction
period.
2020
2021
2022
Costs to date
$246,000
$432,000
$612,000
Estimated costs to complete
354,000
168,000
–0–
Progress billings to date
270,000
546,000
901,000
Cash collected to date...
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a...
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,000,000. During 2021, costs of $2,000,000 were incurred, with
estimated costs of $4,000,000 yet to be incurred. Billings of
$2,500,000 were sent, and cash collected was $2,250,000.
In 2022, costs incurred were $2,500,000 with remaining costs
estimated to be $3,600,000. 2022 billings were $2,750,000, and
$2,475,000 cash was collected. The project was completed in 2023
after additional costs of...
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a...
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,500,000. During 2018, costs of $2,200,000 were incurred, with
estimated costs of $4,200,000 yet to be incurred. Billings of
$2,740,000 were sent, and cash collected was $2,450,000.
In 2019, costs incurred were $2,740,000 with remaining costs
estimated to be $3,900,000. 2019 billings were $2,990,000, and
$2,675,000 cash was collected. The project was completed in 2020
after additional costs of...
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a...
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,050,000. During 2021, costs of $2,020,000 were incurred, with
estimated costs of $4,020,000 yet to be incurred. Billings of
$2,524,000 were sent, and cash collected was $2,270,000.
In 2022, costs incurred were $2,524,000 with remaining costs
estimated to be $3,630,000. 2022 billings were $2,774,000, and
$2,495,000 cash was collected. The project was completed in 2023
after additional costs of...
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a...
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,150,000. During 2018, costs of $2,050,000 were incurred with
estimated costs of $4,050,000 yet to be incurred. Billings of
$2,550,000 were sent, and cash collected was $2,300,000.
In 2019, costs incurred were $2,550,000 with remaining costs
estimated to be $3,675,000. 2019 billings were $2,800,000 and
$2,525,000 cash was collected. The project was completed in 2020
after additional costs of...
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a...
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,000,000. During 2021, costs of $2,000,000 were incurred, with
estimated costs of $4,000,000 yet to be incurred. Billings of
$2,500,000 were sent, and cash collected was $2,250,000.
In 2022, costs incurred were $2,500,000 with remaining costs
estimated to be $3,600,000. 2022 billings were $2,750,000, and
$2,475,000 cash was collected. The project was completed in 2023
after additional costs of...
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