Lawton Builders accepts a contract with Befort Stores to construct a strip mall on Route 3 on January 2, 2022. The builder accepts a fixed fee of $9,390,000 and must complete the project within three years. Costs incurred, estimated total costs, billings, and cash collections are summarized in the following table: E (Click the icon to view the contract information.) (Click the icon for additional information.) Read the requirement Begin by completing the table below. (Use parentheses or a minus sign for a loss.) Revenue and Gross Profit Recognition 2022 2023 2024 Estimated total revenue Percent complete % % % Cumulative revenue Revenue recognized in prior years Current year revenue Less: Actual costs Gross profit (loss) recognized in the current year Prepare the journal entries required in 2022 to record the contract. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) Begin by recording the construction costs in 2022. Account 2022 (a) (b) Next, record the progress billings in 2022 Account 2022 (b) (c) Now, record the cash collections in 2022 Account 2022 (c) (d) Next, record the revenue, costs and gross profit in 2022. Review the revenue and gross profit recognition Account 2022 (d) (e) Now we will record the entries for 2023. Record the construction costs in 2023. Account 2023 (e) (1) Next, record the progress billings in 2023. Account 2023 (1) (g) Now, record the cash collections in 2023. Account 2023 (g) (h) Next, record the revenue, costs and gross profit in 2023. Review the revenue and gross profit recognition. (h) Next, record the revenue, costs and gross profit in 2023. Review the revenue and gross profit recognition. Account 2023 (h) (1) Now we will record the entries for 2024. Record the construction costs in 2024. Account 2024 (0) 0) Next, record the progress billings in 2024. Account 2024 (1) (k) Now, record the cash collections in 2024. Account 2024 (K) (1) Next, record the revenue, costs and gross profit in 2024. Review the revenue and gross profit recognition. (0) Next, record the revenue, costs and gross profit in 2024. Review the revenue and gross profit recognition. Account 2024 (1) (m) Finally record the entry to close the completed contract in 2024. Account 2024 (m) Now, post the journal entries to the appropriate t-accounts. (For accounts with a 50 balance at year end enter"0" on the normal balance side of the t-account. Enter any closing entries after the 2024 balance row in the t-account.) Review the journal entries made above Construction in Progress Billings on Construction in Progress 2022 Balance 2022 Balance 2023 Balance 2023 Balance 2024 Balance 2024 Balance Final Balance Final Balance Construction in Progress Billings on Construction in Progress 2022 Balance 2022 Balance 2023 Balance 2023 Balance 2024 Balance 2024 Balance Final Balance Final Balance Accounts Receivable 2022 Balance 2023 Balance 2024 Balance Final Balance Prepare the partial income statement for the three years. Use a minus sign or parentheses for any loss amounts.) Review the revenue and gross profit recognition. 2022 2023 2024 Revenue from Long-Term Contracts Costs of Construction Accounts Receivable 2022 Balance 2023 Balance 2024 Balance Final Balance Prepare the partial income statement for the three years. (Use a minus sign or parentheses for any loss amounts.) Review the revenue and gross profit recognition 2022 2023 2024 Revenue from Long-Term Contracts Costs of Construction Gross Profit (Loss) Prepare the partial balance sheet for three years. (Enter a "0" for any zero amounts.) 2022 2023 2024 Assets: Accounts Receivable Costs and Recognized Profits in Excess of Billings Liabilities: Billings in Excess of Costs and Recognized Profits Accounts Receivable 2022 Balance 2023 Balance 2024 Balance Final Balance Prepare the partial income statement for the three years. (Use a minus sign or parentheses for any loss amounts.) Review the revenue and gross profit recognition 2022 2023 2024 Revenue from Long-Term Contracts Costs of Construction Gross Profit (Loss) Prepare the partial balance sheet for three years. (Enter a "0" for any zero amounts.) 2022 2023 2024 Assets: Accounts Receivable Costs and Recognized Profits in Excess of Billings Liabilities: Billings in Excess of Costs and Recognized Profits Contract Information Data Table 2022 2023 2024 Actual construction costs incurred during $ 1,580,000 $ 7,200,000 $ 540,000 The arrangement meets the criteria for recognizing revenue over time, and Lawton Builders uses the percentage-of-completion method of accounting. It determines percent complete using the percentage of the square feet that it has completed. The strip mall will be a total of 46,000 square feet. The table below summarizes the square footage completed each year: 2022 2023 2024 7,230,000 440,000 0 the year Estimated costs to complete Progress billings made during the year Cash collections during the year 4,800,000 3,130,000 3,500,000 1,090.000 3,130,000 3,130,000 Cumulative square feet completed 18,400 27,600 46,000 ny Print Print Done Point Print Done Lawton Builders accepts a contract with Befort Stores to construct a strip mall on Route 3 on January 2, 2022. The builder accepts a fixed fee of $9,390,000 and must complete the project within three years. Costs incurred, estimated total costs, billings, and cash collections are summarized in the following table: E (Click the icon to view the contract information.) (Click the icon for additional information.) Read the requirement Begin by completing the table below. (Use parentheses or a minus sign for a loss.) Revenue and Gross Profit Recognition 2022 2023 2024 Estimated total revenue Percent complete % % % Cumulative revenue Revenue recognized in prior years Current year revenue Less: Actual costs Gross profit (loss) recognized in the current year Prepare the journal entries required in 2022 to record the contract. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) Begin by recording the construction costs in 2022. Account 2022 (a) (b) Next, record the progress billings in 2022 Account 2022 (b) (c) Now, record the cash collections in 2022 Account 2022 (c) (d) Next, record the revenue, costs and gross profit in 2022. Review the revenue and gross profit recognition Account 2022 (d) (e) Now we will record the entries for 2023. Record the construction costs in 2023. Account 2023 (e) (1) Next, record the progress billings in 2023. Account 2023 (1) (g) Now, record the cash collections in 2023. Account 2023 (g) (h) Next, record the revenue, costs and gross profit in 2023. Review the revenue and gross profit recognition. (h) Next, record the revenue, costs and gross profit in 2023. Review the revenue and gross profit recognition. Account 2023 (h) (1) Now we will record the entries for 2024. Record the construction costs in 2024. Account 2024 (0) 0) Next, record the progress billings in 2024. Account 2024 (1) (k) Now, record the cash collections in 2024. Account 2024 (K) (1) Next, record the revenue, costs and gross profit in 2024. Review the revenue and gross profit recognition. (0) Next, record the revenue, costs and gross profit in 2024. Review the revenue and gross profit recognition. Account 2024 (1) (m) Finally record the entry to close the completed contract in 2024. Account 2024 (m) Now, post the journal entries to the appropriate t-accounts. (For accounts with a 50 balance at year end enter"0" on the normal balance side of the t-account. Enter any closing entries after the 2024 balance row in the t-account.) Review the journal entries made above Construction in Progress Billings on Construction in Progress 2022 Balance 2022 Balance 2023 Balance 2023 Balance 2024 Balance 2024 Balance Final Balance Final Balance Construction in Progress Billings on Construction in Progress 2022 Balance 2022 Balance 2023 Balance 2023 Balance 2024 Balance 2024 Balance Final Balance Final Balance Accounts Receivable 2022 Balance 2023 Balance 2024 Balance Final Balance Prepare the partial income statement for the three years. Use a minus sign or parentheses for any loss amounts.) Review the revenue and gross profit recognition. 2022 2023 2024 Revenue from Long-Term Contracts Costs of Construction Accounts Receivable 2022 Balance 2023 Balance 2024 Balance Final Balance Prepare the partial income statement for the three years. (Use a minus sign or parentheses for any loss amounts.) Review the revenue and gross profit recognition 2022 2023 2024 Revenue from Long-Term Contracts Costs of Construction Gross Profit (Loss) Prepare the partial balance sheet for three years. (Enter a "0" for any zero amounts.) 2022 2023 2024 Assets: Accounts Receivable Costs and Recognized Profits in Excess of Billings Liabilities: Billings in Excess of Costs and Recognized Profits Accounts Receivable 2022 Balance 2023 Balance 2024 Balance Final Balance Prepare the partial income statement for the three years. (Use a minus sign or parentheses for any loss amounts.) Review the revenue and gross profit recognition 2022 2023 2024 Revenue from Long-Term Contracts Costs of Construction Gross Profit (Loss) Prepare the partial balance sheet for three years. (Enter a "0" for any zero amounts.) 2022 2023 2024 Assets: Accounts Receivable Costs and Recognized Profits in Excess of Billings Liabilities: Billings in Excess of Costs and Recognized Profits Contract Information Data Table 2022 2023 2024 Actual construction costs incurred during $ 1,580,000 $ 7,200,000 $ 540,000 The arrangement meets the criteria for recognizing revenue over time, and Lawton Builders uses the percentage-of-completion method of accounting. It determines percent complete using the percentage of the square feet that it has completed. The strip mall will be a total of 46,000 square feet. The table below summarizes the square footage completed each year: 2022 2023 2024 7,230,000 440,000 0 the year Estimated costs to complete Progress billings made during the year Cash collections during the year 4,800,000 3,130,000 3,500,000 1,090.000 3,130,000 3,130,000 Cumulative square feet completed 18,400 27,600 46,000 ny Print Print Done Point Print Done