Pina, Inc. began work on a $6,759,000 contract in 2020 to construct an office building. During 2020, Pina, Inc. incurred costs of $1,641,860, billed its customers for $1,319,000, and collected $1,054,000. At December 31, 2020, the estimated additional costs to complete the project total $3,187,140. Prepare Pina’s 2020 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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record costs incurred enter a debit amount enter a credit amount enter an account title to record costs incurred enter a debit amount enter a credit amount (To record costs incurred.) enter an account title to record billings enter a debit amount enter a credit amount enter an account title to record billings enter a debit amount enter a credit amount (To record billings.) enter an account title to record collections enter a debit amount enter a credit amount enter an account title to record collections enter a debit amount enter a credit amount (To record collections.) enter an account title to recognize revenue enter a debit amount enter a credit amount enter an account title to recognize revenue enter a debit amount enter a credit amount enter an account title to recognize revenue enter a debit amount enter a credit amount (To recognize revenue.)
Pina, Inc. began work on a $6,759,000 contract in 2020 to construct an office building. During 2020, Pina, Inc. incurred costs of $1,641,860, billed its customers for $1,319,000, and collected $1,054,000. At December 31, 2020, the estimated additional costs to complete the project total $3,187,140.
Prepare Pina’s 2020
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
|
enter an account title to record costs incurred |
enter a debit amount |
enter a credit amount |
|
enter an account title to record costs incurred |
enter a debit amount |
enter a credit amount |
|
(To record costs incurred.) |
||
|
enter an account title to record billings |
enter a debit amount |
enter a credit amount |
|
enter an account title to record billings |
enter a debit amount |
enter a credit amount |
|
(To record billings.) |
||
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
(To record collections.) |
||
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
(To recognize revenue.) |
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