During 2020, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.     2020   2021   2022 Costs incurred to date   $393,900   $760,380   $1,059,000 Estimated costs to complete   616,100   341,620   –0– Billings to date   299,000   905,000   1,610,000 Collections to date   268,000   818,000   1,421,000   Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when 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. For costs incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit enter an account title to record cost of construction enter a debit amount enter a credit amount enter an account title to record cost of construction enter a debit amount enter a credit amount (To record cost of construction.)     enter an account title to record progress billings enter a debit amount enter a credit amount enter an account title to record progress billings enter a debit amount enter a credit amount (To record progress billings.)     enter an account title to record collections enter a debit amount enter a credit amount enter an account title to record collections enter a debit amount enter a credit amount (To record collections.)     enter an account title to recognize revenue enter a debit amount enter a credit amount enter an account title to recognize revenue enter a debit amount enter a credit amount enter an account title to recognize revenue enter a debit amount enter a credit amount

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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During 2020, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.

   
2020
 
2021
 
2022
Costs incurred to date
  $393,900   $760,380   $1,059,000
Estimated costs to complete
  616,100   341,620   –0–
Billings to date
  299,000   905,000   1,610,000
Collections to date
  268,000   818,000  

1,421,000

 

Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when 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. For costs incurred use account Materials, Cash, Payables.)

Account Titles and Explanation
Debit
Credit
enter an account title to record cost of construction
enter a debit amount
enter a credit amount
enter an account title to record cost of construction
enter a debit amount
enter a credit amount
(To record cost of construction.)
   
enter an account title to record progress billings
enter a debit amount
enter a credit amount
enter an account title to record progress billings
enter a debit amount
enter a credit amount
(To record progress billings.)
   
enter an account title to record collections
enter a debit amount
enter a credit amount
enter an account title to record collections
enter a debit amount
enter a credit amount
(To record collections.)
   
enter an account title to recognize revenue
enter a debit amount
enter a credit amount
enter an account title to recognize revenue
enter a debit amount
enter a credit amount
enter an account title to recognize revenue
enter a debit amount
enter a credit amount
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