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. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year Contract price Estimated total cost Estimated gross profit Estimated loss 2023 "$2,928,960+ $1,647,540 $1,017,000 The revised estimates for the bridge contract are as follows. 3,051,000 968,000 817,000 2024 $2,928,960 1,647,540 2,418,000 1,897,000 4,068,000 $452,000 2025 $4,576,500 1.134,000 2023 Original Estimates 2024 Revised Estimates $4,520,000 $4,520,000 4,576,500 0 1,806,000 $(56,500) Under the percentage-of-completion method, how would Sunland record the long-term contract revenues, expenses, and losses in 2024. Please show all steps

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. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year Contract price Estimated total cost Estimated gross profit Estimated loss 2023 "$2,928,960+ $1,647,540 $1,017,000 The revised estimates for the bridge contract are as follows. 3,051,000 968,000 817,000 2024 $2,928,960 1,647,540 2,418,000 1,897,000 4,068,000 $452,000 2025 $4,576,500 1.134,000 2023 Original Estimates 2024 Revised Estimates $4,520,000 $4,520,000 4,576,500 0 1,806,000 $(56,500) Under the percentage-of-completion method, how would Sunland record the long-term contract revenues, expenses, and losses in 2024. Please show all steps

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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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 $ 2,100,000 $ 2,450,000 $ 2,695,000 Estimated costs to complete as of year-end 4,900,000 2,450,000 0 Billings during the year 2,200,000 2,350,000 5,450,000 Cash collections during the year 1,900,000 2,300,000 5,800,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).2-c. In the journal below, complete the necessary journal entries for the year 2023…
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