On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,425,000. During 2024, costs of $2,170,000 were incurred, with estimated costs of $4,170,000 yet to be incurred. Billings of $2,704,000 were sent, and cash collected was $2,420,000. In 2025, costs incurred were $2,704,000 with remaining costs estimated to be $3,855,000. 2025 billings were $2,954,000, and $2,645,000 cash was collected. The project was completed in 2026 after additional costs of $3,970,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 2a. Prepare journal entries for 2024 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 2b. Prepare journal entries for 2025 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2024. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2025. On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,425,000. During 2024, costs of $2,170,000 were incurred, with estimated costs of $4,170,000 yet to be incurred. Billings of $2,704,000 were sent, and cash collected was $2,420,000. In 2025, costs incurred were $2,704,000 with remaining costs estimated to be $3,855,000. 2025 billings were $2,954,000, and $2,645,000 cash was collected. The project was completed in 2026 after additional costs of $3,970,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 2a. Prepare journal entries for 2024 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 2b. Prepare journal entries for 2025 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2024. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2025.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary...
-
On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2024, costs of $2,000,000 were incurred, with...
-
Is it important for a company to follow a strict budget even though they may be experiencing phenomenal profits? Do you think that there will be a bias towards greed when creating the budget for this...
-
In the expression 2 4 , the number 2 is called the______and 4 is called the_______.
-
Which items in Table 30.9 would be affected by the following events? a. There is a rise in interest rates. b. Suppliers demand interest for late payment. c. Dynamic receives an unexpected bill in the...
-
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock...
-
1. London Heathrow Airport Launches BI and Machine Learning to Improve Airfield Management, Predict Passenger Flow and Transform Airport Security Why did London Heathrow need to move up from Excel to...
-
Chen, CPA, is the auditor for Greenleaf Manufacturing Corporation, a privately owned company that has a June 30 fiscal year. Greenleaf arranged for a substantial bank loan that was dependent on the...
-
Identify cultural issues between firms, the public, and employees. Reaffirm the role of values and ethics in decision making and leadership. Confirm accountability and determine which people and...
-
4.2 The input-output curve of a gas-fired generating unit is approximated by the following function: H(P) = 120 +9.3P+0.0025P (MJ/h) This unit has a minimum stable generation of 200 MW and a maximum...
-
Imagine you as a team of R n D Engineer in the HarPick Inc. The CEO called a design task, which wanted your group to design special fragrance air freshener device for this coming Christmas holiday....
-
Earnings would be higher (lower) each year by $ million. (Round to two decimal places, and use a negative number for a decline.)
-
For the question, please fill in the box that says "(???)".? The Question contains 2 parts because the question was too long to capture in a single screen ? Date 1 July 2019 1 June 2020 30 June 2020...
-
Go to the "Monthly Rounds and Revenue" tab. Management wants to know the number of rounds of golf played each month based on the "Participation Category" (Column D) and the monthly rounds of golf...
-
Corporate Stationery and Furniture Supplies Pty Ltd was acquired and registered as a company on 1 July 2021 under the rebranded name as listed. The company is classified as a Proprietary Limited (Pty...
-
CURRENT MONTHLY LIVING EXPERPSESde a breakdown of the total amount listed in the case study -use your discretion) Food/housekeeping Insurance (e.g. motor vehicles, home contents/ building, medical,...
-
A property project produces an after-tax return of 8.5% on total funds invested. The investor can borrow funds for this project at 7.5% and the investor's marginal tax rate is 35.5%. Assuming an LVR...
-
Using the theoretical sampling strategy, how many samples of size 4 (n = 4) can be drawn from a population of size: (a) N = 5? (b) N = 8? (c) N = 16? (d) N = 50?
-
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $5,000 under each of the following situations: 1. The payments are received at the end of each of...
-
National Supplys shareholders equity included the following accounts at December 31, 2023: Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later...
-
The Eldorado Corporations controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2024: Additional information: 1....
-
The root mean square (rms) value of a function, \(x(t)\), is defined as the square root of the average of the squared value of \(x(t)\) over a time period \(\tau\) :...
-
The amplitudes of displacement and acceleration of an unbalanced turbine rotor are found to be \(0.5 \mathrm{~mm}\) and \(0.5 \mathrm{~g}\), respectively. Find the rotational speed of the rotor using...
-
Find the Fourier series expansions of the functions shown in Figs. 1.58(ii) and (iii). Also, find their Fourier series expansions when the time axis is shifted down by a distance \(A\). (d) (e) x(t)...
Study smarter with the SolutionInn App