On February 1 , 2 0 2 4 , Arrow Construction Company entered into a three -
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Question:
On February Arrow Construction Company entered into a threeyear construction contract to build a bridge for a price of $ During costs of $ were incurred, with estimated costs of $ yet to be incurred. Billings of $ were sent, and cash collected was $
In costs incurred were $ with remaining costs estimated to be $ billings were $ and $ cash was collected. The project was completed in after additional costs of $ were incurred. The companys fiscal yearend is December This project does not qualify for revenue recognition over time.
Required:
Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.
a Prepare journal entries for to record the transactions described credit "Cash, Materials, etc." for construction costs incurred
b Prepare journal entries for to record the transactions described credit "Cash, Materials, etc." for construction costs incurred
a Prepare a partial balance sheet to show the presentation of the project as of December
b Prepare a partial balance sheet to show the presentation of the project as of December
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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