On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $825,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $440,000 Progress billings $209,000 Cash collections $192,500 $440,000 Estimated costs to complete a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order. a. Account b. To recognize revenues and expenses Account • + b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Debit + ● Credit Debit Credit

On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $825,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $440,000 Progress billings $209,000 Cash collections $192,500 $440,000 Estimated costs to complete a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order. a. Account b. To recognize revenues and expenses Account • + b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Debit + ● Credit Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...

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Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $525,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $280,000 $133,000 $122,500 Estimated costs to complete $280,000 a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order. Progress billings Cash collections a. Account To recognize revenues and expenses b. ♦ ◆ b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Account Debit Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Credit Debit Credit
On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $825,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $440,000 Progress billings $209,000 Cash collections $192,500 $440,000 Estimated costs to complete a. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized over time. Note: Record any multiple debits in alphabetical order and any multiple credits in alphabetical order. a. Account b. To recognize revenues and expenses Account ◆ b. Prepare the 2020 journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). To recognize revenues and expenses Debit ♦ Credit Debit Credit
On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $900,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $480,000 Progress billings $228,000 Cash collections $210,000 Estimated costs to complete $480,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. *Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Cost of Construction Deferred Revenue Revenues from Long-Term Contracts To recognize revenues and expenses N/A-Debit Account Name V N/A-Credit To recognize revenues and expenses Dr. 480,000 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. *Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and…
On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $675,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $360,000 Progress billings $171,000 Cash collections $157,500 Estimated costs to complete $360,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. •Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Cost of Construction Construction in Process Revenues from Long-Term Contracts V To recognize revenues and expenses Account Name Billings on Contracts Construction in Process V To recognize revenues and expenses Dr. 720,000 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. •Note: If a journal entry isn't required on any of the…
On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $900,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $480,000 Progress billings $228,000 Cash collections $210,000 Estimated costs to complete $480,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. •Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name To recognize revenues and expenses Dr. 0 0 0 Cr. 0 0 0
On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following transactions and estimates relate to this contract. Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. - Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank ( zero). b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. -Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero).
Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are: Costs incurred during the year Estimated costs to complete Dalton uses the percentage-of-completion method. 2021 $3,300,000 2,700,000 2022 $2,750,000 Instructions (a) How much revenue should be reported for 2021? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2021. (c) Make the entry to record the revenue and gross profit for 2021. (d) How much gross profit should be reported for 2022? Show your computation.
Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2020, a single long-term project was begun, which continued through 2018 Information on the project follows: 12/31 Accounts Receivable balance Construction expenses for year Gross Profit recognized in year Bangs during year The 12/31/21 CIP balance is Select one O $50,000 Ob 1322,000 O 1619.000 Od $106.000 O $112,000 2020 $100,000 105,000 122,000 100,000 20121 $300.000 192,000 200,000 420.000
Blossom Construction Company uses the percentage-of-completion method of accounting. In 2021, Blossom began work on a contract it had received which provided for a contract price of $47500000. Other details follow: 2021 Costs incurred during the year $22000000 Estimated costs to complete as of December 31 16000000 Billings during the year 21500000 Collections during the year 10500000 What should be the gross profit recognized in 2021?
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Show Transcribed Text Revenue Gross profit (loss) 3 2024 2024 2025 $ 2,204,000 $ 3,192,000 5,396,000 2,140,000 1,870,000 2025 2,204,000 3,256,000 3,200,000 Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. 2026 2026 $ 2,424,400 0 4,604,000 4,930,000
During the year 2019, Height Cons began work on a contract for 3,700,000. Costs incurred during the year 1,800,000. Estimated costs to complete as of December 31= 1,200,000 Billings during the year1,650,000 Collections during the year 975,000 It uses the percentage-of-completion method. Find reporting gross profit?