Gary Construction Associates accepted a contract to build an office building on January 2, 2022. The company will complete the contract within two years. Gary provided the following information related to the revenue, estimated costs, progress billings, and collections over the two-year period (Click the icon to view the contract information) Requirement Prepare the journal entries for each year to record the contract assuming that Gary uses the completed-contract method (show all supporting computations)
Gary Construction Associates accepted a contract to build an office building on January 2, 2022. The company will complete the contract within two years. Gary provided the following information related to the revenue, estimated costs, progress billings, and collections over the two-year period (Click the icon to view the contract information) Requirement Prepare the journal entries for each year to record the contract assuming that Gary uses the completed-contract method (show all supporting computations)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gary Construction Associates accepted a contract to build an office building on January 2, 2022. The company will complete the contract
within two years. Gary provided the following information related to the revenue, estimated costs, progress billings, and collections over
the two-year period
(Click the icon to view the contract information)
Requirement
Prepare the journal entries for each year to record the contract assuming that Gary uses the completed-contract method (show all
supporting computations).
Transcribed Image Text:Contract price
Actual construction costs incurred during the year
Construction costs incurred in prior years
Cumulative construction costs incurred to date
Estimated costs to complete
Estimated total costs
Progress billings made during the year
Cash collections during the year
$
$
4,000,000
2022
2,625,000 $
0
2,625,000
875,000
3,500,000
2,400,000
2,000,000
2023
900,000
2,625,000
3,525,000
0
3,525,000
1,600,000
2,000,000
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