Sunland, Inc. began work on a $6,550,000 contract in 2025 to construct an office building. During 2025, Sunland, Inc. incurred costs of $1,817,440, billed its customers for $1,316,000, and collected $1,039,000. At December 31, 2025, the estimated additional costs to complete the project total $3,094,560. Prepare Sunland's 2025 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Sunland, Inc. began work on a $6,550,000 contract in 2025 to construct an office building. During 2025, Sunland, Inc. incurred costs of $1,817,440, billed its customers for $1,316,000, and collected $1,039,000. At December 31, 2025, the estimated additional costs to complete the project total $3,094,560. Prepare Sunland's 2025 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I'm having a hard time trying to figure out the amounts needed to record revenue. Please help me understand how to come about getting these numbers.

Transcribed Image Text:Construction in Process
Construction Expenses
Revenue from Long-Term Contracts
(To recognize revenue.)
100

Transcribed Image Text:Sunland, Inc. began work on a $6,550,000 contract in 2025 to construct an office building. During 2025, Sunland, Inc. incurred costs of
$1,817,440, billed its customers for $1,316,000, and collected $1,039,000. At December 31, 2025, the estimated additional costs to
complete the project total $3,094,560.
Prepare Sunland's 2025 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No
entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
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