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 $366,300 623,700 300,000 271,000 2026 $772,100 330,900 909,000 807,000 2027 $1,063,000 -0- 1,610,000 1,424,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 26E
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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
$366,300
623,700
300,000
271,000
2026
$772,100
330,900
909,000
807,000
2027
$1,063,000
-0-
1,610,000
1,424,000
Transcribed Image Text: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 $366,300 623,700 300,000 271,000 2026 $772,100 330,900 909,000 807,000 2027 $1,063,000 -0- 1,610,000 1,424,000
ary 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
Construction in Process
Materials, Cash, Payables
(To record cost of construction.)
Accounts Receivable.
Billings on Construction in Process
(To record progress billings.)
Accounts Receivable
Billings on Construction in Process
(To record collections.)
Construction Expenses
Construction in Process
Revenue from Long Term Contracts
(To recognize revenue.)
Debit
00:00
Credit
100 10 10 10
Transcribed Image Text:ary 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 Construction in Process Materials, Cash, Payables (To record cost of construction.) Accounts Receivable. Billings on Construction in Process (To record progress billings.) Accounts Receivable Billings on Construction in Process (To record collections.) Construction Expenses Construction in Process Revenue from Long Term Contracts (To recognize revenue.) Debit 00:00 Credit 100 10 10 10
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