On January 1, 2012, the Kobe Construction Company entered into a 3-year contract to build a dam.

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On January 1, 2012, the Kobe Construction Company entered into a 3-year contract to build a dam. The original contract price was $21,000,000 and the estimated cost was $19,400,000. The following cost data relate to the construction period.

On January 1, 2012, the Kobe Construction Company entered into

Prepare the required journal entries for the three years of the contract, assuming Kobe uses the completed-contract method.

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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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