The Town of Westchester hired Moose Jaw Construction Company to construct! motorized traffic under a fixed-price contract. It will take 3 years to finish construction of the bridge. Information relating to the costs and billings for this contract follows: Contract price Total estimated construction cost at contract inception Total costs incurred to date Estimated costs to complete Customer billings to date Colllections to date $ 28,957,100 $ 19,838,691 Required: Moose Jaw Construction Company uses the percentage of completion method to account for the bridge construction project. 2023 19,863,691 2021 2022 $ $ 6,448,056 $ 15,045,464 4,793,227 S $13,390,635 $ $ 9,652,400 $ 19,304,700 $ 28,957,100 $ 6,756,700 $ 17,374,200 $ 26,061,400 1. Calculate Moose Jaw Construction Company's gross profit for all years of the project. Round all calculations to 2 decimal points 2. Prepare Moose Jaw Construction Company's journal entries for the 2022 year 3. Determine the revenue to be recognized by Moose Jaw Construction Company for the 2021, 2022 and 2023 years, assuming the completed contract method is used
The Town of Westchester hired Moose Jaw Construction Company to construct! motorized traffic under a fixed-price contract. It will take 3 years to finish construction of the bridge. Information relating to the costs and billings for this contract follows: Contract price Total estimated construction cost at contract inception Total costs incurred to date Estimated costs to complete Customer billings to date Colllections to date $ 28,957,100 $ 19,838,691 Required: Moose Jaw Construction Company uses the percentage of completion method to account for the bridge construction project. 2023 19,863,691 2021 2022 $ $ 6,448,056 $ 15,045,464 4,793,227 S $13,390,635 $ $ 9,652,400 $ 19,304,700 $ 28,957,100 $ 6,756,700 $ 17,374,200 $ 26,061,400 1. Calculate Moose Jaw Construction Company's gross profit for all years of the project. Round all calculations to 2 decimal points 2. Prepare Moose Jaw Construction Company's journal entries for the 2022 year 3. Determine the revenue to be recognized by Moose Jaw Construction Company for the 2021, 2022 and 2023 years, assuming the completed contract method is used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The Town of Westchester hired Moose Jaw Construction Company to construct a bridge for
motorized traffic under a fixed-price contract. It will take 3 years to finish construction of the
bridge. Information relating to the costs and billings for this contract follows:
Contract price
Total estimated construction cost at contract inception
Total costs incurred to date
Estimated costs to complete
Customer billings to date
Colllections to date
$
$
Required:
Moose Jaw Construction Company uses the percentage of completion method
to account for the bridge construction project.
28,957,100
19,838,691
2023
19,863,691
2021
2022
$ 6,448,056 $ 15,045,464 $
4,793,227 S
$13,390,635 S
$ 9,652,400 $ 19,304,700 $
28,957,100
$ 6,756,700 S 17,374,200 $ 26,061,400
1. Calculate Moose Jaw Construction Company's gross profit for all years of the
project. Round all calculations to 2 decimal points
2. Prepare Moose Jaw Construction Company's journal entries for the 2022 year
3. Determine the revenue to be recognized by Moose Jaw Construction
Company for the 2021, 2022 and 2023 years, assuming the completed
contract method is used](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F887ed175-539f-4079-a422-06d93f0bd677%2F1e5d47ad-9b51-4df6-ad0b-ad419ae0c4a9%2Fso0ej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Town of Westchester hired Moose Jaw Construction Company to construct a bridge for
motorized traffic under a fixed-price contract. It will take 3 years to finish construction of the
bridge. Information relating to the costs and billings for this contract follows:
Contract price
Total estimated construction cost at contract inception
Total costs incurred to date
Estimated costs to complete
Customer billings to date
Colllections to date
$
$
Required:
Moose Jaw Construction Company uses the percentage of completion method
to account for the bridge construction project.
28,957,100
19,838,691
2023
19,863,691
2021
2022
$ 6,448,056 $ 15,045,464 $
4,793,227 S
$13,390,635 S
$ 9,652,400 $ 19,304,700 $
28,957,100
$ 6,756,700 S 17,374,200 $ 26,061,400
1. Calculate Moose Jaw Construction Company's gross profit for all years of the
project. Round all calculations to 2 decimal points
2. Prepare Moose Jaw Construction Company's journal entries for the 2022 year
3. Determine the revenue to be recognized by Moose Jaw Construction
Company for the 2021, 2022 and 2023 years, assuming the completed
contract method is used
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