Homework Help is Here – Start Your Trial Now!
Business
Accounting
Curtiss Construction Company, Inc. entered into a fixed-price contract with Stewart Associates on July 1, 2019, to construct a four-story office building. At that time, Curtiss estimated it would take between two and three years to complete the project. The total contract price for construction of the building is $5,000,000. The building was completed on December 31, 2021. Information related to the construction is as follows:

Curtiss Construction Company, Inc. entered into a fixed-price contract with Stewart Associates on July 1, 2019, to construct a four-story office building. At that time, Curtiss estimated it would take between two and three years to complete the project. The total contract price for construction of the building is $5,000,000. The building was completed on December 31, 2021. Information related to the construction is as follows:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

10

Curtiss Construction Company, Inc. entered into a fixed-price contract with Stewart Associates on July 1, 2019, to construct a four-story office building. At that time, Curtiss estimated it would take between two and three years to complete the project. The total contract price for construction of the building is $5,000,000. The building was completed on December 31, 2021. Information related to the construction is as follows: At 12/31/19 $350,000 Costs incurred to date $4,250,000 Estimated costs to complete 0 Billings to Stewart 2,100,000 Required: 1. Prepare entries to record construction costs and billings for each year 3,150,000 At 12/31/20 700,000 $2,500,000 1,700,000 At 12/31/21 2,200,000
Transcribed Image Text:Curtiss Construction Company, Inc. entered into a fixed-price contract with Stewart Associates on July 1, 2019, to construct a four-story office building. At that time, Curtiss estimated it would take between two and three years to complete the project. The total contract price for construction of the building is $5,000,000. The building was completed on December 31, 2021. Information related to the construction is as follows: At 12/31/19 $350,000 Costs incurred to date $4,250,000 Estimated costs to complete 0 Billings to Stewart 2,100,000 Required: 1. Prepare entries to record construction costs and billings for each year 3,150,000 At 12/31/20 700,000 $2,500,000 1,700,000 At 12/31/21 2,200,000
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS