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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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