-Your answer is partially correct. Assume that Cullumber Construction Company has a non-cancellable contract to construct a $5,450,000 bridge at an estimated cost of $4,000,000. 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, Cullumber has revised the estimated total cost from $4,000,000 to $4,015,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 2024 $1,000,000 $2,890,800 3,000,000 1,124,200 957,000 2,422,000 774,000 Construction in Process 1,881,000 2025 $4,015,000 2,071,000 0 2,795,000 What would the journal entries be for 2025? (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 amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit 1124200 Credit
-Your answer is partially correct. Assume that Cullumber Construction Company has a non-cancellable contract to construct a $5,450,000 bridge at an estimated cost of $4,000,000. 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, Cullumber has revised the estimated total cost from $4,000,000 to $4,015,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 2024 $1,000,000 $2,890,800 3,000,000 1,124,200 957,000 2,422,000 774,000 Construction in Process 1,881,000 2025 $4,015,000 2,071,000 0 2,795,000 What would the journal entries be for 2025? (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 amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit 1124200 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please don't provide answer in image format thank you
Transcribed Image Text:Your answer is partially correct.
Assume that Cullumber Construction Company has a non-cancellable contract to construct a $5,450,000 bridge at an estimated cost
of $4,000,000. 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, Cullumber has revised the estimated total cost from $4,000,000 to
$4,015,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method.
Costs to date (12/31)
Estimated costs to complete (12/31)
Progress billings during the year
Cash collected during the year
2023
$1,000,000
3,000,000
957,000
Construction in Process
774,000
2024
$2,890,800
1,124,200
2,422,000
1,881,000
2025
$4,015.000
2,071,000
0
2,795,000
What would the journal entries be for 2025? (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 amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Debit
1124200
Credit
Ac
V
Ad
o
Qu
Act
Transcribed Image Text:IL WUUU tre journia CHICCUI RUZU TUISunucum caure u
manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entri
Account Titles and Explanation
Construction in Process
Miscellaneous Expense
(To record cost of construction)
Accounts Receivable
Billings on Construction in Process
(To record progress billings)
Cash
Accounts Receivable
(To record collections)
Construction in Process
Construction Expenses
Revenue from Long-Term Contracts
Debit
1124200
2071000
2795000
1435000
1124200
Credit
1124200
2071000
U
2795000
2559200
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