Included in the Work in progress ($20,520) is an amount of $2,000,000 relating to a Building which was completed, commissioned and put to use on 5 July 2021, after an additional amount of $800,000 was spent to complete the pavement aspect of the building. This expenditure has not yet been paid. Prepare the entries to account for these transactions.

Included in the Work in progress ($20,520) is an amount of $2,000,000 relating to a Building which was completed, commissioned and put to use on 5 July 2021, after an additional amount of $800,000 was spent to complete the pavement aspect of the building. This expenditure has not yet been paid. Prepare the entries to account for these transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What would be the journal entry for the following statement when converting from modified accrual to accrual accounting? The City finished a new Admin building with a final cost of $8,500,000 on June 30, 2022. Construction in progress at the beginning of the fiscal year was $6,000,000.
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed In 2026. Information related to the contract is as follows: Cost Incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the Journal below, complete the necessary Journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs Incurred). 2-b. In the Journal below, complete the necessary Journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs Incurred). Cost Incurred during the year Estimated costs to complete as of year-end 2-c. In the Journal below, complete the necessary…
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2024 $ 2,739,000 5,561,000 2,300,000 2,100,000 Cost incurred during the year Estimated costs to complete as of year-end 2025 $ 3,735,000 1,826,000 4,174,000 3,900,000 2024 $ 2,430,000 5,630,000 2-b. In the journal below, complete the necessary journal entries for the year…
Required information (The following information applies to the questions displayed below). In 2021 the Westgate construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023, Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $2,016,000 $2,800,000 $2,613,600 Estimated costs to complete as of year-end 5,184,000 2,376,000 $ 0 Billings during the year 2,180,000 2,644,000 5,176,000 Cash collections during the year 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion Complete the information required below to…
Please help with attached questions, thanks.
On January 2, Basketville City purchased equipment with a useful life of three years to be used by its capital project fund. Which of the following is the correct treatment for the asset? A.) Capitalize; depreciation is optional B.) Capitalize; depreciation is required C.) Capitalize; depreciation is not permitted. D.) Record the purchase of the equipment as an expenditure
Please help me
Please help with question, thank you.
Consider each of the transaction below independently. All expenditures were made in cash Xon Corporation paid $35,000 in 2020 for continuing frequent, and low-cost repairs to an existing building Prepare all necessary journal entries to record each the transaction. Use this format: Date Account Titles DR CR
Please help with question, thanks.
help me
Vala