Question: Minnie Mouse Construction signed a $2,250,000 contract to construct an office building for the State of Florida. The project began in 2023 and was completed

Minnie Mouse Construction signed a $2,250,000 contract to construct an office building for the State of Florida. The project began in 2023 and was completed in 2024. The cost of construction is expected to be $2,100,000. Below is a summary of events for 2023 and 2024: 2023 2024 Costs incurred during the year $ 634,500 $1,518,000 Estimated costs to complete 1,537,500 0 Billings during the year 800,000 1,450,000 Cash collections during the year 750,000 1,250,000 Required: Prepare the journal entries for 2023 and 2024 to record the amount of revenue and gross profit (or loss) that Minnie Mouse Construction will recognize each year for this construction project assuming that they will recognize revenue and gross profit (or loss) upon completion of the project

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

4. Christopher Robin Construction Co. signed a $2,000,000 contract to construct an office building for the State of Florida. The project will begin in 2018 and be completed in 2019. The cost of...

Included in this folder you will find a power point presentation that outlines the basics of the new Revenue Recognition Standard. Included in these slides are specific examples that show you how the...

PART A Jan 1) Peloton began operation in 2021 and sold $50,000,000 common stocks (1,000,000 shares @ $50 per share). Feb 1) Purchased 10,000 bikes from a manufacturer for $1,500 each, on account. May...

Jan 1) Peloton began operation in 2021 and sold $50,000,000 common stocks (1,000,000 shares @ $50 per share). Feb 1) Purchased 10,000 bikes from a manufacturer for $1,500 each, on account. May 1)...

Report: Your report should include: I. NSU Cover page (1 page in length). It will present the name of the case and the author(s) of the report. II. Executive Summary (1 page in length). The Executive...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

hi could you help with this assignment? i am hard time finding the fraud thanks Student Handout 1. Tallahassee BeanCounters organizational chart Franklin Kennedy Owner Phil Ackers President $95,000...

There are 3 case study assignments, I have provided the required readings with each case study Case study and at the end we are suppose to answer the case study questions READING This forum is a...

Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $892.250 with approved spending of $577.000 and operating transfers...

. AABC , D E AC BC DE AB F, CE DF AE CE = 6 cm, CF = 2.5 cm , BC X 1. 14 cm Ans

You are working on the audit of Chip Ltd and have completed your review of controls over cash receipts. You have noted the following controls: Control 1: Handling of cash is entirely separate from...

Can you work this out in detail? Prepare a statement of cash flows using the direct method. ( Do not prepare a reconciliation schedule. ) ( Show amounts in the investing and financing sections that...

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...