Prepare all necessary journal entries for 2026. (Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For costs incurred use accountMaterials, Cash, Payables. List all debit entries before credit entries.)Account Titles and Explanation(To record cost of construction.)(To record progress billings.)(To record collections.)DebitCredit During 2025, Ivanhoe Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. Thefollowing information is available.Costs incurred to dateEstimated costs to completeBillings to dateCollections to date2025$383,800 $905,280626,200302,0002026271,000198,720896,000817,0002027$1,063,000-0-1,610,0001,419,000

2025 2026 2027 Billings during the year $302,000 $594,000 (i.e. $896,000-$302,000) $714,000…

During 2025, Ivanhoe Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2025 $383,800 626,200 302,000 271,000 2026 $905,280 198,720 896,000 817,000 2027 $1,063,000 -0- 1,610,000 1,419,000

During 2025, Ivanhoe Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2025 $383,800 626,200 302,000 271,000 2026 $905,280 198,720 896,000 817,000 2027 $1,063,000 -0- 1,610,000 1,419,000

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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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

Prepare all necessary journal entries for 2026. (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 O for the amounts. For costs incurred use account
Materials, Cash, Payables. List all debit entries before credit entries.)
Account Titles and Explanation
(To record cost of construction.)
(To record progress billings.)
(To record collections.)
Debit
Credit

During 2025, Ivanhoe Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The
following information is available.
Costs incurred to date
Estimated costs to complete
Billings to date
Collections to date
2025
$383,800 $905,280
626,200
302,000
2026
271,000
198,720
896,000
817,000
2027
$1,063,000
-0-
1,610,000
1,419,000

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