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 |
In: Accounting
Tamarisk Construction Company began work on a $406,500 construction
contract in 2020. During 2020, Tamarisk incurred costs of $292,500,
billed its customer for $213,500, and collected $177,000. At
December 31, 2020, the estimated additional costs to complete the
project total $161,340.
Prepare Tamarisk’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 |
In: Accounting
Cullumber Construction Company began work on a $400,000
construction contract in 2020. During 2020, Cullumber incurred
costs of $250,000, billed its customer for $200,000, and collected
$170,000. At December 31, 2020, the estimated additional costs to
complete the project total $178,890.
Prepare Cullumber’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 |
In: Accounting
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 |
In: Accounting
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 $ 2,072,000 $ 2,738,000 $ 2,849,000 Estimated costs to complete as of year-end 5,328,000 2,590,000 0 Billings during the year 2,160,000 2,650,000 5,190,000 Cash collections during the year 1,880,000 2,700,000 5,420,000 Westgate recognizes revenue over time according to percentage of completion. 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.)
In: Accounting
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 $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to complete as of year-end 5,256,000 2,628,000 0 Billings during the year 2,170,000 2,502,000 5,328,000 Cash collections during the year 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion.
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. ( Do not round intermediate calculation. Loss amounts should be indicated with a minus sign.)
In: Accounting
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 | $ | 2,490,000 | $ | 3,984,000 | $ | 2,008,600 | |||
| Estimated costs to complete as of year-end | 5,810,000 | 1,826,000 | 0 | ||||||
| Billings during the year | 2,030,000 | 4,444,000 | 3,526,000 | ||||||
| Cash collections during the year | 1,815,000 | 3,900,000 | 4,285,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
3. Complete the information required below to
prepare a partial balance sheet for 2021 and 2022 showing any items
related to the contract. (Do not round intermediate
calculations.)
In: Accounting
In 2018, 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 2020. Information related to
the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,580,000 | $ | 4,042,000 | $ | 2,175,800 | |||
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 | ||||||
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 | ||||||
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.
In: Accounting
In 2018, 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 2020. Information related to the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,542,000 | $ | 3,772,000 | $ | 2,074,600 | |||
| Estimated costs to complete as of year-end | 5,658,000 | 1,886,000 | 0 | ||||||
| Billings during the year | 2,020,000 | 4,294,000 | 3,686,000 | ||||||
| Cash collections during the year | 1,810,000 | 3,800,000 | 4,390,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.
In: Accounting
In 2018, 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 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.
In: Accounting