9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completedin 2024. Cost and other data are presented below20232024cost incurred during the year469,000 $1,050,000estimated cost to complete871,000 $billings during the year480,000 $1,270,000cash collections during the year380,000 $1,370,000YearGeneral JournalDebitCreditAssume that Beavis recognizes revenue on this contract over time according to percentage of completionRequired:a.2023a.b.Record the entry for costs incurred during the year 2023.Record the entry for billings during the year 2023.b.2023c.d.e.f.g.Record the entry for cash collections during the year 2023.Record the entry for revenue from long-term contracts.Record the entry for costs incurred during the year 2024Record the entry for billings during the year 2024Record the entry for cash collections during the year 2024C.2023d.2023e.2024h.1.Record the entry for revenue from long-term contractsRecord the entry to close the construction accountsf.2024g.2024h.20241.2024

The revenue which has to be recognized as per the percentage of completion method is a method…

9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below cost incurred during the year estimated cost to complete billings during the year cash collections during the year 2023 2024 469,000 $ 1,050,000 871,000 $ 480,000 $ 1,270,000 380,000 $ 1,370,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: a. b. Record the entry for costs incurred during the year 2023. Record the entry for billings during the year 2023. c. d. e. f. g. h. 1. Record the entry for cash collections during the year 2023. Record the entry for revenue from long-term contracts. Record the entry for costs incurred during the year 2024 Record the entry for billings during the year 2024 Record the entry for cash collections during the year 2024 Record the entry for revenue from long-term contracts Record the entry to close the construction accounts Year General Journal Debit Credit a. 2023 b. 2023 C. 2023 d. 2023 2024 f. 2024 g. 2024 h. 2024 1. 2024

9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below cost incurred during the year estimated cost to complete billings during the year cash collections during the year 2023 2024 469,000 $ 1,050,000 871,000 $ 480,000 $ 1,270,000 380,000 $ 1,370,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: a. b. Record the entry for costs incurred during the year 2023. Record the entry for billings during the year 2023. c. d. e. f. g. h. 1. Record the entry for cash collections during the year 2023. Record the entry for revenue from long-term contracts. Record the entry for costs incurred during the year 2024 Record the entry for billings during the year 2024 Record the entry for cash collections during the year 2024 Record the entry for revenue from long-term contracts Record the entry to close the construction accounts Year General Journal Debit Credit a. 2023 b. 2023 C. 2023 d. 2023 2024 f. 2024 g. 2024 h. 2024 1. 2024

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject : Accounting