In February $2023,$ Crane Construction signed a contract and commenced construction on a parking garage. The total contract price was $\backslash (\backslash$$ $91\mathrm{.}4\backslash )$ million and was expected to be completed in July $2025$ at a total estimated cost of $\backslash (\backslash$$ $82\mathrm{.}8\backslash )$ million. Payment by the customer was to be made in several stages, based on significant events and dates throughout the construction timeline. Based on the terms of the contract with the customer, control over the parking garage $($i$.$e$.$ ownership$)$ does not transfer to the customer until completion. Crane's year$-$end was September $30$ and follows ASPE.

By the end of September, $2023,$ Crane had incurred $\backslash (\backslash$$ $8,280,000\backslash )$ in costs and had invoiced $\backslash (\backslash$$ $9,900,000\backslash )$ in progress billings. $\backslash (\backslash$$ $8,200,000\backslash )$ of the progress billings had been collected.

By September $30,2024,$ Crane had incurred $\backslash$$$55,230,000$ in total costs and had invoiced $\backslash$$$45,400,000$ in progress billings, including the progress billings in $2023.$ Of the total billings, $\backslash (\backslash$$ $30,500,000\backslash )$ had been collected. Also, Crane reviewed its cost estimates on the project, and now believed the parking garage would cost $\backslash (\backslash$$ $78\mathrm{.}9\backslash )$ million in total to complete.

Using the completed$-$contract method, prepare all journal entries required for the year ended September $30,2023.$ Use Materials, Cash, Payables for costs incurred to date. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$1.$ Using the completed$-$contract method, prepare all journal entries required for the year ended September $30,2023.$ Use Materials, Cash, Payables for costs incurred to date. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

$1.$

$($To record the $2023$ cost of construction$)$

$2.$

$($To record the $2023$ progress billings$)$

$3.$

$($To record the $2023$ cash collections$)$ Using the completed$-$contract method, prepare all journal entries required for the year ended September $30,2024.$ Use Materials, Cash, Payables for costs incurred to date. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

$1.$

$($To record the $2024$ cost of construction$)$

$2.$

$($To record the $2024$ progress billings$)$

$3.$

$($To record the $2024$ cash collections$)$ Prepare the journal entry to record revenue and cost of construction on completion of the project, assuming all billings are completed and the total actual cost is the same as the $2024$ estimate. Use Materials, Cash, Payables for costs incurred to date. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record the $2025$ cost of construction$)$

$($To record the $2025$ progress billings$)$

$($To record the $2025$ cash collections$)]$

$($To record revenue, costs and gross profit of construction of parking garage$)$