In 2020, Crane Contractors began construction on an office building. The building was expected to cost $46,310,000 in total, andwas expected to be completed in early 2022. The customer was to pay Crane $48,760,000 for the building. Crane was able to usepercentage-of-completion accounting for the project, and at the end of 2020 had accumulated $11,577,500 in cost. Craneestimated that the costs to complete the construction were in line with the original expected total costs.During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramatically raisedcosts in the construction industry. As a result, at the end of 2021, Crane estimated that the office building would cost $4,780,000in total. To the end of 2021, Crane had spent $38,828,400 on constructing the office building.Calculate the revenue to be recognized by Crane for the 2021 fiscal year.Revenue to be recognized$$24,867,600Prepare the journal entry to record revenue, construction expenses. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accounttitles and enter 0 for the amounts.)Account Titles and ExplanationDebitCredit

Journal entries serve as the foundation for other accounting tasks such as ledger account…

In 2020, Crane Contractors began construction on an office building. The building was expected to cost $46,310,000 was expected to be completed in early 2022. The customer was to pay Crane $48,760,000 for the building. Crane was bercentage-of-completion accounting for the project, and at the end of 2020 had accumulated $11,577,500 in cost. C estimated that the costs to complete the construction were in line with the original expected total costs. During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramati costs in the construction industry. As a result, at the end of 2021, Crane estimated that the office building would cost in total. To the end of 2021, Crane had spent $38,828,400 on constructing the office building. Calculate the revenue to be recognized by Crane for the 2021 fıscal year. Revenue to be recognized 2$ $24,867,600

In 2020, Crane Contractors began construction on an office building. The building was expected to cost $46,310,000 was expected to be completed in early 2022. The customer was to pay Crane $48,760,000 for the building. Crane was bercentage-of-completion accounting for the project, and at the end of 2020 had accumulated $11,577,500 in cost. C estimated that the costs to complete the construction were in line with the original expected total costs. During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramati costs in the construction industry. As a result, at the end of 2021, Crane estimated that the office building would cost in total. To the end of 2021, Crane had spent $38,828,400 on constructing the office building. Calculate the revenue to be recognized by Crane for the 2021 fıscal year. Revenue to be recognized 2$ $24,867,600

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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