Prepare the following journal entries: 1. To record construction cost 2. To record billings 3. To record collections 4. To record revenue

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse
facilities in Gros Islet. The following information has been provided.
Contract price - $25 000 000
Cost during year
Estimated cost to complete
Progress billings to date
Cash collected to date
Prepare the following journal entries:
1. To record construction cost
2. To record billings
3. To record collections
4. To record revenue
2021
$ 4 000 000
16 000 000
4 500 000
4 200 000
2022
$8 000 000
8 050 000
11 500 000
11 000 000
2023
$8 100 000
이
25 000 000
25 000 000
Transcribed Image Text:BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse facilities in Gros Islet. The following information has been provided. Contract price - $25 000 000 Cost during year Estimated cost to complete Progress billings to date Cash collected to date Prepare the following journal entries: 1. To record construction cost 2. To record billings 3. To record collections 4. To record revenue 2021 $ 4 000 000 16 000 000 4 500 000 4 200 000 2022 $8 000 000 8 050 000 11 500 000 11 000 000 2023 $8 100 000 이 25 000 000 25 000 000
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