Allen Construction was awarded a contract to build a new office tower on January 1,2019. At...

  

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Allen Construction was awarded a contract to build a new office tower on January 1,2019. At the time, Allen's best estimate of total costs to construct the building was $20 million. The total revenues on the project were $22 million. The following information details events related to the contract over 2019, 2020, and 2021 (Note: costs are annual not cumulative): Fiscal Year Ended December 31,2019 December 31,2020 December 31,2021 Annual Costs Estimated Costs to Incurred Complete During Year 3,600,000 9,725,000 7,675,000 16,400,000 7,300,000 0 Annual Billings 4,000,000 10,000,000 8,000,000 Annual Cash Received 2,800,000 9,100,000 10,100,000 (A) Assume that Allen Corporation uses the percentage of completion method to account for long-term contracts, calculate the revenue recognized in 2019, 2020, and 2021 + (B) Record journal entries for Allen Construction for this contract over the years 2019-2021 Account Dr Account 2019 Dr Cr 2019 Dr Cr (C) Assume Allen Construction used the completed-contract method. Record the necessary journal entries for gross profit over the years 2019-2021. You do not need to record the other entries 2020 Dr Cr 2020 Dr Cr 2021 Dr 2021 Cr Cr Allen Construction was awarded a contract to build a new office tower on January 1,2019. At the time, Allen's best estimate of total costs to construct the building was $20 million. The total revenues on the project were $22 million. The following information details events related to the contract over 2019, 2020, and 2021 (Note: costs are annual not cumulative): Fiscal Year Ended December 31,2019 December 31,2020 December 31,2021 Annual Costs Estimated Costs to Incurred Complete During Year 3,600,000 9,725,000 7,675,000 16,400,000 7,300,000 0 Annual Billings 4,000,000 10,000,000 8,000,000 Annual Cash Received 2,800,000 9,100,000 10,100,000 (A) Assume that Allen Corporation uses the percentage of completion method to account for long-term contracts, calculate the revenue recognized in 2019, 2020, and 2021 + (B) Record journal entries for Allen Construction for this contract over the years 2019-2021 Account Dr Account 2019 Dr Cr 2019 Dr Cr (C) Assume Allen Construction used the completed-contract method. Record the necessary journal entries for gross profit over the years 2019-2021. You do not need to record the other entries 2020 Dr Cr 2020 Dr Cr 2021 Dr 2021 Cr Cr

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A Calculation of Revenue to be recognized Fiscal Year Ended 31122019 31122020 3... View the full answer