Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $5,000,000 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, Ivanhoe has revised the estimated total cost from $4,000,000 to $4,071,000.) 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 Account Titles and Explanation (To record cost of construction) (To record progress billings) (To record collections) 2023 (To record revenues) $1,000,000 3,000,000 955,000 788,000 2024 $2,931,120 1,139,880 2,443,000 1,801,000 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.) 2025 $4,071,000 Debit 1,602,000 0 2,411,000 111 1000 Credit II II SURRORT

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.