In February 2018, X-cell Inc. began construction on a commercial building for EastCo which had a contract price of $2,400,000. The construction is scheduled to be completed in May 2020. Contract information for all three years is given below at the company's December 31 year-end. Contract costs incurred during the year Estimated additional costs to complete_ Billings to EastCo during the year Cash collections during year 2018 2019 2020 600,000 1,100,000 500,000 1,500,000 100,000 550,000 1,050,000 800,000 525,000 925,000 950,000 Using the percentage-of-completion method, fill in the incomplete journal entries for X-cell Inc. Please make sure your final answer(s) are accurate to the nearest whole number. Date Account December Construction in progress_ 2018 to 2020 Cash, materials, etc. December Accounts receivable 2018 to 2020 Billings on construction contract December Cash_ 2018 to 2020 Accounts receivable_ December Construction expense. 2018 to 2020 Construction in progress (gross profit). Revenue from long-term contracts. December Billings on construction contract_ 2018 to 2020 Construction in progress_ 2018 2019 2020 Debit Credit Debit Credit Debit Credit

In February 2018, X-cell Inc. began construction on a commercial building for EastCo which had a contract price of $2,400,000. The construction is scheduled to be completed in May 2020. Contract information for all three years is given below at the company's December 31 year-end. Contract costs incurred during the year Estimated additional costs to complete_ Billings to EastCo during the year Cash collections during year 2018 2019 2020 600,000 1,100,000 500,000 1,500,000 100,000 550,000 1,050,000 800,000 525,000 925,000 950,000 Using the percentage-of-completion method, fill in the incomplete journal entries for X-cell Inc. Please make sure your final answer(s) are accurate to the nearest whole number. Date Account December Construction in progress_ 2018 to 2020 Cash, materials, etc. December Accounts receivable 2018 to 2020 Billings on construction contract December Cash_ 2018 to 2020 Accounts receivable_ December Construction expense. 2018 to 2020 Construction in progress (gross profit). Revenue from long-term contracts. December Billings on construction contract_ 2018 to 2020 Construction in progress_ 2018 2019 2020 Debit Credit Debit Credit Debit Credit

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 48P

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