BIG Construction (BC) is building a bridge for $40 million at a total cost of $34...

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BIG Construction (BC) is building a bridge for $40 million at a total cost of $34 million over the next three years. The company uses percentage of completion method to recognize revenue. Below is a summary of the contract: 2022 2023 2024 Costs to date $6,000,000 $26,000,000 $34,500,000 Estimated costs to complete $28,000,000 $8,500,000 -0- Progress billings during the year $8,000,000 $22,000,000 $10,000,000 $6,250,000 $22,250,000 $11,500,000 Cash collected during the year Prepare the journal entries for 2022, 2023 and 2024 including construction in process and billing in process, construction revenue and construction expese BIG Construction (BC) is building a bridge for $40 million at a total cost of $34 million over the next three years. The company uses percentage of completion method to recognize revenue. Below is a summary of the contract: 2022 2023 2024 Costs to date $6,000,000 $26,000,000 $34,500,000 Estimated costs to complete $28,000,000 $8,500,000 -0- Progress billings during the year $8,000,000 $22,000,000 $10,000,000 $6,250,000 $22,250,000 $11,500,000 Cash collected during the year Prepare the journal entries for 2022, 2023 and 2024 including construction in process and billing in process, construction revenue and construction expese

Answer rating: 100% (QA)

To prepare the journal entries for 2022 2023 and 2024 we need to account for construction in process ... View the full answer