Question: I need help with C. I would like working notes too, so I know how you got the answers. Thank you! Ayayai Construction Company uses
I need help with "C". I would like working notes too, so I know how you got the answers. Thank you!
Ayayai Construction Company uses the percentage-of-completion method of accounting. In 2020, Ayayai began work under contract #E2-D2, which provided for a contract price of $2,195,000. Other details follow:
| 2020 | 2021 | |||
| Costs incurred during the year | $695,310 | $1,404,000 | ||
| Estimated costs to complete, as of December 31 | 921,690 | 0 | ||
| Billings during the year | 426,000 | 2,195,000 | ||
| Collections during the year | 352,000 | 1,475,000![]() ![]() ![]() |
Ayayai Construction Company uses the percentage-of-completion method of accounting. In 2020, Ayayai began work under contract #E2-D2, which provided for a contract price of $2,195,000. Other details follow: 2020 2021 $695,310 $1,404,000 921,690 -0- Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 426,000 2,195,000 352,000 1,475,000 (a) Your Answer Correct Answer Your answer is correct. What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ 943850 Revenue recognized in 2021 1251150 (b) Your answer is correct. Assuming the same facts as those above except that Ayayai uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2021? Revenue recognized in 2021 $ 2195000 eTextbook and Media List of Accounts Attempts: 1 of 2 used Using multiple attempts will impact your score. 20% score reduction after attempt 1 (c) Your answer is partially correct. Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and Your answer is partially correct. Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts. For costs incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit Construction in Process 708690 Materials, Cash, Payables 708690 (To record cost of of construction.) Accounts Receivable 1769000 IA DAE Billings on Construction in Process 1769000 (To record progress billings.) cash 1123000 Accounts Receivable 1123000 (To record collections.) Construction in Process 708690 Materials, Cash, Payables 708690 (To record cost of of construction.) Accounts Receivable 1769000 Billings on Construction in Process 1769000 (To record progress billings.) LA LA LA MUE cash 1123000 Accounts Receivable 1123000 (To record collections.) Construction Expenses 708690 Construction in Process 542460 Revenue from Long-Term Contracts 1251150 (To recognize revenue.)
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