FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The Puff and Stuff Company is involved in a three-year long-term contract. The following data relate to this contract: | ||||||||
2016 | 2017 | 2018 | Total | |||||
Contract Price | $ 200,000 | |||||||
Costs incurred each year | $ 24,000 | $ 56,000 | $ 30,000 | $ 110,000 | ||||
Costs incurred to date | $ 24,000 | $ 80,000 | $ 110,000 | |||||
Estimated cost to complete | $ 96,000 | $ 40,000 | $ - | |||||
Partial billings each year | $ 50,000 | $ 112,000 | $ 38,000 | |||||
Cash collected from billings | $ 35,000 | $ 120,000 | $ 45,000 | |||||
Required: | ||||||||
Prepare the |
||||||||
2016 Entries | ||||||||
a. Construction costs for the year | ||||||||
b. Partial billings | ||||||||
c. Cash collections | ||||||||
d. Gross Profit | ||||||||
2017 Entries | ||||||||
a. Construction costs for the year | ||||||||
b. Partial billings | ||||||||
c. Cash collections | ||||||||
d. Gross Profit | ||||||||
2018 Entries | ||||||||
a. Construction costs for the year | ||||||||
b. Partial billings | ||||||||
c. Cash collections | ||||||||
d. Gross Profit and closing of construction accounts | ||||||||
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