Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina began work under contract #E2- D2, which provided for a contract price of $2,219,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2020 $620,490 970,510 428,000 350,000 2021 $1,429,000 -0- 2,219,000 1,471,000
Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina began work under contract #E2- D2, which provided for a contract price of $2,219,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2020 $620,490 970,510 428,000 350,000 2021 $1,429,000 -0- 2,219,000 1,471,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina began work under contract #E2-
D2, which provided for a contract price of $2,219,000. Other details follow:
Costs incurred during the year
Estimated costs to complete, as of December 31
Billings during the year
Collections during the year
2020
$620,490
970,510
428,000
350,000
2021
$1,429,000
-0-
2,219,000
1,471,000
Transcribed Image Text:Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are
automatically indented when 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. For costs incurred use account Materials, Cash, Payables.)
Account Titles and Explanation
(To record cost of of construction.)
(To record progress billings.)
Debit
Credit
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