Camden Corporation agreed to build a warehouse for a client at an agreed contract price of...
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Camden Corporation agreed to build a warehouse for a client at an agreed contract price of $1,260,000. Expected (and actual) costs for the warehouse follow: 2016, $283,500, 2017, $472,500; and 2018, $189,000. The company completed the warehouse in 2018. a. Use the financial statement effects template to record contract revenues and expenses for each year 2016 through 2018 using the cost-to-cost method. Assume Camden does not receive payment until the contract is completed. All costs are paid in cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction 1. 2016: Record construction costs paid 2. 2016: Accrue revenue for contract 3. 2017: Record construction costs paid. 4, 2017: Accrue revenue for contract 5.2018: Record construction costs paid 6. 2018: Accrue revenue for contract Balance Sheet Cash Asset + + # + + Noncash Assets + ♦ + ÷ ♦ + = = Liabilities + + ÷ + + + Contrib. Capital + + # + + + Earned Capital # b. Prepare journal entries and t-accounts to record contract revenues and expenses for each year 2016 through 2018 using the cost-to-cost method. + + : + ÷ Income Statement Revenues + + # 수 ♦ + Expenses ♦ # : ♦ ♦ ↑ 2016 2016 2017 2016 2017 2018 2018 Account Record construction costs paid ♦ + Accrue revenue for contract Cost of Sales 2017 ◆ Account + Record construction costs paid ♦ ♦ Accrue revenue for contract Cost of Sales Account ◆ ♦ Record construction costs paid ♦ Accrue revenue for contract Debit Debit Debit Credit 2016 Credit 2017 Credit Cash Cash 2016 2017 Accounts Receivable Accounts Receivable 2016 2017 Revenue Revenue Accounts Payable Accounts Receivable Cash Common Stock Cost of Sales Retained Earnings Revenue Unearned Revenue Warehouse N/A Camden Corporation agreed to build a warehouse for a client at an agreed contract price of $1,260,000. Expected (and actual) costs for the warehouse follow: 2016, $283,500, 2017, $472,500; and 2018, $189,000. The company completed the warehouse in 2018. a. Use the financial statement effects template to record contract revenues and expenses for each year 2016 through 2018 using the cost-to-cost method. Assume Camden does not receive payment until the contract is completed. All costs are paid in cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction 1. 2016: Record construction costs paid 2. 2016: Accrue revenue for contract 3. 2017: Record construction costs paid. 4, 2017: Accrue revenue for contract 5.2018: Record construction costs paid 6. 2018: Accrue revenue for contract Balance Sheet Cash Asset + + # + + Noncash Assets + ♦ + ÷ ♦ + = = Liabilities + + ÷ + + + Contrib. Capital + + # + + + Earned Capital # b. Prepare journal entries and t-accounts to record contract revenues and expenses for each year 2016 through 2018 using the cost-to-cost method. + + : + ÷ Income Statement Revenues + + # 수 ♦ + Expenses ♦ # : ♦ ♦ ↑ 2016 2016 2017 2016 2017 2018 2018 Account Record construction costs paid ♦ + Accrue revenue for contract Cost of Sales 2017 ◆ Account + Record construction costs paid ♦ ♦ Accrue revenue for contract Cost of Sales Account ◆ ♦ Record construction costs paid ♦ Accrue revenue for contract Debit Debit Debit Credit 2016 Credit 2017 Credit Cash Cash 2016 2017 Accounts Receivable Accounts Receivable 2016 2017 Revenue Revenue Accounts Payable Accounts Receivable Cash Common Stock Cost of Sales Retained Earnings Revenue Unearned Revenue Warehouse N/A
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Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
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