Assume that Crane Construction Company has a non-cancellable contract to construct a $5,440,000 bridge at an estimated cost of $4,000,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,000,000 to $4,094,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 $1,000,000 3,000,000 994,000 814,000 2024 $2,947,680 1.146,320 2,483,000 1,757,000 2025 $4,094,000 1,963,000 2,869,000 What would the journal entries be for 2025? (Credit account titles are automatically indented when the 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. List all debit
Assume that Crane Construction Company has a non-cancellable contract to construct a $5,440,000 bridge at an estimated cost of $4,000,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,000,000 to $4,094,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 $1,000,000 3,000,000 994,000 814,000 2024 $2,947,680 1.146,320 2,483,000 1,757,000 2025 $4,094,000 1,963,000 2,869,000 What would the journal entries be for 2025? (Credit account titles are automatically indented when the 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. List all debit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that Crane Construction Company has a non-cancellable contract to construct a $5,440,000 bridge at an estimated cost of
$4,000,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the
construction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,000,000 to $4,094,000.)
Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method.
Costs to date (12/31)
Estimated costs to complete (12/31)
Progress billings during the year
Cash collected during the year
2023
2024
2025
$1,000,000 $2,947,680 $4,094,000
3,000,000
994,000
814,000
1,146,320
2,483,000
1,757,000
0
1.963,000
2,869,000
What would the journal entries be for 2025? (Credit account titles are automatically indented when the 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. List all debit
entries before credit entries.)
Transcribed Image Text:Account Titles and Explanation
(To record cost of construction)
(To record progress billings)
(To record collections)
(To record revenues)
Debit
Credit
|
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