Clorad Corp. contracts with a customer to construct a building. It appropriately determines that it has one performance obligation which is satisfied over time. Using the following information for Year 1: Year 1 (of 4-year project): Construction costs incurred during the year $174,000 Estimated costs to complete the contract 426,000 Partial billings to customers 100,000 Collections from customers 25,000 Total contract price 1,000,000 Required: Prepare the journal entries to record Year 1s (a) construction costs, (b) partial billings, (c) cash collections, and (d) gross profit.

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GENERAL JOURNAL

Score: 51/113

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