Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below: Year 1 $2,800,000 $2,800,000 $2,800,000 Year 2 Year 3 Sale price Estimated costs 1,600,000 2,000,000 2,000,000 Costs incurred to date (paid in cash) 400,000 900,000 2,000,000 Billed to date 250,000 1,150,000 2,800,000 Received in cash to date 190,000 950,000 2,800,000 Record the necessary journal entries for Years 1-3.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new
warehouse facility. Information for Years 1, 2, and 3 is shown below:
Year 1
Year 2
Year 3
Sale price
$2,800,000 $2,800,000 $2,800,000
Estimated costs
1,600,000 2,000,000
2,000,000
Costs incurred to date (paid in cash)
400,000
900,000
2,000,000
Billed to date
250,000
1,150,000
2,800,000
Received in cash to date
190,000
950,000
2,800,000
Record the necessary journal entries for Years 1-3.
Transcribed Image Text:Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below: Year 1 Year 2 Year 3 Sale price $2,800,000 $2,800,000 $2,800,000 Estimated costs 1,600,000 2,000,000 2,000,000 Costs incurred to date (paid in cash) 400,000 900,000 2,000,000 Billed to date 250,000 1,150,000 2,800,000 Received in cash to date 190,000 950,000 2,800,000 Record the necessary journal entries for Years 1-3.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education