Inexperienced construction company Kevin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2,100,000. The work began in early 2023 and Kevin incurred costs of $945,000. At December 31, 2023, the estimated future costs to complete the project totalled $945,000. During 2024, Kevin ran into trouble with weather conditions and incurred the expected costs of $945,000 and estimated that it would need to spend an additional $310,000 to complete the project. During 2025, Kevin reluctantly completed the project, incurring further costs of $365,000. Prepare the December 31, 2024 year-end journal entry to record any loss from the contract, assuming Kevin uses the completed- contract method. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Date December 31, 2024 Account Titles and Explanation Debit Credit

Inexperienced construction company Kevin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2,100,000. The work began in early 2023 and Kevin incurred costs of $945,000. At December 31, 2023, the estimated future costs to complete the project totalled $945,000. During 2024, Kevin ran into trouble with weather conditions and incurred the expected costs of $945,000 and estimated that it would need to spend an additional $310,000 to complete the project. During 2025, Kevin reluctantly completed the project, incurring further costs of $365,000. Prepare the December 31, 2024 year-end journal entry to record any loss from the contract, assuming Kevin uses the completed- contract method. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Date December 31, 2024 Account Titles and Explanation Debit Credit

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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