Assume that Sunland Construction Company has a non-cancellable contract to construct a $4,520,000 bridge at anestimated cost of $4,068,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. Thefollowing data pertain to the construction period. Assume that progress billings are non-refundable.Costs to date (12/31)Estimated costs to complete (12/31)Progress billings during the yearCash collected during the yearContract priceEstimated total costEstimated gross profit2023Estimated loss$1,017,0003,05 1,000968,000The revised estimates for the bridge contract are as follows.817,0004,068,0002024$2,928,960$452,0001,647,5402,418,0001,897,0002025$4,576,5002023 Original Estimates 2024 Revised Estimates$4,520,000$4,520,0001,134,0001,806,00004,576,500*$(56,500) Under the percentage-of-completion method, how would Sunland record the long-term contract revenues, expenses,and loss in 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)Account TitlesDebitCredit

Journal entry is a primary entry that records the financial transactions initially. The transactions…

Assume that Sunland Construction Company has a non-cancellable contract to construct a $4,520,000 bridge at an estimated cost of $4,068,000. 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. Assume that progress billings are non-refundable.

Assume that Sunland Construction Company has a non-cancellable contract to construct a $4,520,000 bridge at an estimated cost of $4,068,000. 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. Assume that progress billings are non-refundable.

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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