Walnut Corp. was awarded a contract to build a bridge in a suburb of Vancouver at a

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Question:

Walnut Corp. was awarded a contract to build a bridge in a suburb of Vancouver at a total contract price of $10,000,000. The estimated total costs to complete the project were $8,000,000. Walnut uses the percentage-of-completion method for all such contracts.

Instructions

a. Prepare the entry to record construction costs of $4,800,000, on construction in the process to date.

b. Prepare the entry to record progress billings of $2,200,000.

c. Prepare the entry to recognize the profit that can be recognized to date.