Assume that Crane Construction Company has a non-cancellable contract to construct a $4,640,000 bridge at an estimated cost of$4,176,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to theconstruction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,176,000 to $4,228,200.)Assume that progress billings are non-refundable.Costs to date (12/31)Estimated costs to complete (12/31)Progress billings during the yearCash collected during the year(a1)Account Titles and Explanation(To record cost of construction)(To record progress billings)(To record collections)(To record revenues)2023(To record construction expense)3,173,760$1,002,240 $2,959,740 $4,228,200994,0002024834,9601,268,4602,483,000Prepare all journal entries required for Crane to account for this contract for 2023. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts. List all debit entries before credit entries.)20251,812,59001,163,0001,992,450DebitCredit

Completed contract method: This method is often applied in the construction industry or other…

Assume that Crane Construction Company has a non-cancellable contract to construct a $4,640,000 bridge at an estimated cost of $4,176,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,176,000 to $4,228,200.) Assume that progress billings are non-refundable. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year (a1) 2023 $1,002,240 3,173,760 994,000 834.960 2024 $2,959,740 1,268,460 2,483,000 1,812.590 2025 $4,228,200 0 1,163,000 1,992,450 Prepare all journal entries required for Crane to account for this contract for 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the

Assume that Crane Construction Company has a non-cancellable contract to construct a $4,640,000 bridge at an estimated cost of $4,176,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,176,000 to $4,228,200.) Assume that progress billings are non-refundable. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year (a1) 2023 $1,002,240 3,173,760 994,000 834.960 2024 $2,959,740 1,268,460 2,483,000 1,812.590 2025 $4,228,200 0 1,163,000 1,992,450 Prepare all journal entries required for Crane to account for this contract for 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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