Prepare Bramble's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed- contract 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 0 for the amounts. Round answers to O decimal places, e.g. 5,275.)

Prepare Bramble's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed- contract 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 0 for the amounts. Round answers to O decimal places, e.g. 5,275.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...

See similar textbooks

Similar questions

Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
Dhapa
Dinesh bhai
Urmila Ben
On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $525,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $280,000 $133,000 $122,500 Estimated costs to complete $280,000 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. Progress billings Cash collections a. Account To recognize revenues and expenses b. ♦ ◆ b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Account Debit 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 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 $28,500. 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 4,250 16,700 Collections to date 3,800 15,120 In the journal entry to record construction expense, construction revenue, and gross profit for 2021, how much should Construction in Process be debited/credited? (Just enter the amount. DO NOT put a plus or minus sign in front of the amount.) (Do not round your answers in any part of the computation.)
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 Progress billings $209,000 Cash collections $192,500 $440,000 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
In 2025, Sunland Construction Corp. began construction work under a 3-year contract. The contract price was $1,090,000. Sunland uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2025, are shown below. Balance Sheet Accounts receivable Construction in process Less: Billings Costs and recognized profit in excess of billings Income Statement $16,600 $62,500 58,000 4,500 Income (before tax) on the contract recognized in 2025 (a) Your answer is correct. How much cash was collected in 2025 on this contract? (b) Portion of contract billings collected $ eTextbook and Media * Your answer is incorrect. $20,000 41400 What was the initial estimated total income before tax on this contract? Income before tax on this contract $ 4500 Attempts: 2 of 15 used
Ezra Construction Co. ("ECC") started business in 2020 and accepted its first contract to construct a building for $2.3 million, starting March 1, 2020. The planned completion date is December 2022. ECC uses the percentage-of-completion method of accounting for long-term contracts. Percentage-of-completion is measured based on total costs incurred compared to total estimated construction costs. ECC uses IFRS and its year-end is December 31. Certain data related to the contract are summarized below: Dec. 31, 2020 Dec. 31, 2021 Costs incurred during the year Est'd remaining costs to complete Progress billings to date Cash collections during the year 330,000 370,000 900,000 967,000 485,000 1,170,000 410,000 375,000 REQUIRED A. Prepare all required journal entries for 2020 and 2021. B. What should be the balance of Accounts Receivable as of December 31, 2021? C. What should be the balance of Construction-in-Progress (CIP) Inventory as of December 31, 2021? D. Ignore your answers to parts…
Please answer in good accounting form. Thankyou How much is the Gross Profit/Loss Realized in 2019?
Current Attempt in Progress In 2025, Carla Vista Construction Corp. began construction work under a 3-year contract. The contract price was $1,100,000. Carla Vista uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2025, are shown below. Accounts receivable Construction in process Balance Sheet Less: Billings Costs and recognized profit in excess of billings Income Statement $64,000 62,400 Income (before tax) on the contract recognized in 2025 Portion of contract billings collected How much cash was collected in 2025 on this contract? $17.400 $16,640 1,600
Guillen, Inc. began work on a $7,000,000 contract in 2020 to construct an office building. Guillen uses the completed-contract method. At December 31, 2020, the balances in certain accounts were Construction in Process $1,715,000, Accounts Receivable $240,000, and Billings on Construction in Process $1,000,000. Indicate how these accounts would be reported in Guillen's December 31, 2020, balance sheet.