Beavis Construction Company was the low bidder on a construction project to build an earthen dam for
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Question:
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,720,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below:
2023 2024
Costs incurred during the year $ 411,000 $ 1,020,000
Estimated costs to complete 959,000 $0
Billings during the year 465,000 1,255,000
Cash collections during the year 365,000 1,355,000
Assume that Beavis recognizes revenue upon completion of the project.
Required:
Prepare all journal entries to record costs, billings, collections, and profit recognition.
- Record the entry for costs incurred during the year 2023.
- Record the entry for billings during the year 2023.
- Record the entry for cash collection during the year 2023.
- Record the entry for revenue from long-term contracts.
- Record the entry for costs incurred during the year 2024.
- Record the entry for billings during the year 2024.
- Record the entry for cash collection during the year 2024.
- Record the entry for revenue from long-term contracts.
- Record the entry to close the construction accounts.
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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