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.
Prepare the required journal entries for the three years of the contract, assuming Kobe uses the completed-contract method.
Transcribed Image Text:
Cost Incurred Estimated Cost to Complete Cash Collected Year Billings $7,200,000 $12,500,000 $7,200,000 $6,500,000 6,700,000 7,800,000 6,500,000 7,900,000 0 7,300,000 8,100,000
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2012 Construction in Progress 7200000 Materials Labor Cash etc 7200000 Accounts Receivable 7200000 P...View the full answer
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