Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year. Cash collections during the year 2023 2024 $ 423,000 $ 1,190,000 987,000 445,000 345,000 0 1,445,000 1,545,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year. Cash collections during the year 2023 2024 $ 423,000 $ 1,190,000 987,000 445,000 345,000 0 1,445,000 1,545,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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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Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,720,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year 2023 $ 411,000 959,000 2024 $ 1,020,000 e 465,000 1,255,000 Cash collections during the year 365,000 1,355,000 Assume that Beavis recognizes revenue upon completion of the project. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Record the entry for costs incurred during the year 2023. Note: Enter debits before credits. Date 2023 General Journal Debit Credit View general journal Record entry Clear entry
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