January 1, 2019, A contract with a 6 percent retainage clause was sig ned with Arab Construction Company to construct a new dly Kall F8 $4,000,000. March 15, The contractor submitted a progress billing of $3,000,000; the billing (less a 6 percent retainage) was approved. The entr that should be recorded in March 15 is O a. Debit, Budgetary Fund Reserved for Encumbrances $3,000,000; Cr dit, Encumbrances $3,000,000 O b. Debit, Encumbrances $3,000,000; Credit, Budgetary Fund Reserver for Encumbrances $3,000,000. O. Debit, Encumbrances $4,000,000; Credit, Budgetary Fund Reserver for Encumbrances $4,000,000. O d. Debit, Expenditures-Construction Cost $3,000,000; Credit, Vouche Payable $3,000,000,

January 1, 2019, A contract with a 6 percent retainage clause was sig ned with Arab Construction Company to construct a new dly Kall F8 $4,000,000. March 15, The contractor submitted a progress billing of $3,000,000; the billing (less a 6 percent retainage) was approved. The entr that should be recorded in March 15 is O a. Debit, Budgetary Fund Reserved for Encumbrances $3,000,000; Cr dit, Encumbrances $3,000,000 O b. Debit, Encumbrances $3,000,000; Credit, Budgetary Fund Reserver for Encumbrances $3,000,000. O. Debit, Encumbrances $4,000,000; Credit, Budgetary Fund Reserver for Encumbrances $4,000,000. O d. Debit, Expenditures-Construction Cost $3,000,000; Credit, Vouche Payable $3,000,000,

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

On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $825,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $440,000 $209,000 $192,500 $440,000 Progress billings Cash collections Estimated costs to complete a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order. a. Account b. To recognize revenues and expenses Account + # + b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Debit + + Credit Debit Credit
A company uses the percentage-of-completion method of accounting. In 2020, the company began work a project, which had a contract price of $22,300. Other details follow: 2020 2021 Costs incurred to date $6,000 $18,000 Estimated costs to complete, as of December 31 14,000 -0- Billings to date 11,460 16,830 Collections to date 9,470 14,650 In the journal entry to record progress billings for 2021, how much should Billings on Construction in Process be debited/credited? (Just enter the amount. DO NOT put a plus or minus sign in front of the amount.)
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 $ 3,344,000 $ 3,960,000 $ 1,645,600 Estimated costs to complete as of year-end 5,456,000 1,496,000 0 Billings during the year 2,800,000 4,504,000 2,696,000 Cash collections during the year 2,600,000 4,400,000 3,000,000 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 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries…
The government makes appropriations of RO 200,000 to Sohar School for the month of January 2019. During the month the following transactions occurred: Salary paid RO 50,000 Purchase orders were placed for office supplies RO 72,000 Office supplies were received with a voucher for RO 60,000 An amount of RO 25,000 was transferred to Debt service fund. The unreserved fund balance at the end of the period is: a. 90,000 b. 150,000 c. 78,000 d. 65,000
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 $ 2,100,000 $ 2,450,000 $ 2,695,000 Estimated costs to complete as of year-end 4,900,000 2,450,000 0 Billings during the year 2,200,000 2,350,000 5,450,000 Cash collections during the year 1,900,000 2,300,000 5,800,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).2-c. In the journal below, complete the necessary journal entries for the year 2023…
Explain clearly
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 $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the…
at the end of the 2023 fiscal year the general fund had $500 in encumbrances that remained opened into fiscal year 2024. In 2024 the encumbered goods were received at an invoiced cost of $520. How much would be recorded as the 2024 expenditure?
Assume that Cullumber Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of $4,140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. Assume that progress billings are non-refundable. 2023 2024 2025 Costs to date (12/31) $1,076,400 $2,980,800 $4,657,500 Estimated costs to complete (12/31) 3,063,600 1,676,700 Progress billings during the year 957,000 2,422,000 1.221,000 Cash collected during the year 774,000 1,881,000 1,945,000 The revised estimates for the bridge contract are as follows. 2023 Original Estimates 2024 Revised Estimates Contract price $4,600,000 $4,600,000 Estimated total cost 4,140,000 4,657,500* Estimated gross profit $460,000 Estimated loss $(57,500) *$2,980,800+ $1,676,700 (a1) * Your answer is incorrect. Under the percentage-of-completion method, calculate the total loss in 2024. Total loss in 2024 $ LA 156400
5
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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Revenue Gross profit (loss) 2021 2022 $2,610,000 $3,162,000 6,390,000 2,028,000 2,100,000 1,850,000 2021 2022 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.) 2023 $2,230,800 2023 0 3,672,000 4,228,000 5,150,000 3,000,000
1. During 2020, Bay Construction started a new construction job with a contract price of $750 million. Bay has a 12/31 fiscal year end. Bay has determined that the contract does not qualify for revenue recognition over time. The contract was completed on 12/31/22 with the following information ($ in millions): Costs incurred in the period (paid in cash) Estimated costs to complete at 12/31 Billings on contract in the period Cash collected in the period 2020 180.0 2021 2022 432.0 150.0 540.0 153.0 -0- 150 350 250 200 400 150 What is the amount of gross profit (loss) on the contract that Bay would recognize on the Income Statement in 2020, 2021 and 2022? You must show supporting work (calculations/explanations) to receive credit for your answers. Gross Profit (Loss) 2020 2021 2022