Tiger Construction is awarded a contract to build a baseball stadium in specifications of the new MLB franchise, the Charlotte Queens The contract price is $350 million Construction will begin on June 15, 2021, and is expected to be completed by opening day, May 3, 2023 The following table summarizes expected construction costs, billings, and collections from the customer 1 What are the journal entries that Tiger Construction would record in 2021 2022, and 2023 assuming they recognize revenue over time 2 What are the journal entries that tiger construction would record in 2021, 2022, and 2023 assuming they recognize revenue upon completion Contract billings Costs incurred Expected costs to complete Collections from customer 2021 $75 $60 $200 $65 2022 $175 $140 $50 $165 2023 $100 $80 $0 $120

Question: Tiger Construction is awarded a contract to build a baseball stadium in specifications of the new MLB franchise, the Charlotte Queens. The contract price is

Tiger Construction is awarded a contract to build a baseball stadium in specifications of the new MLB franchise, the Charlotte Queens. The contract price is $350 million. Construction will begin on June 15, 2021, and is expected to be completed by opening day, May 3, 2023. The following table summarizes expected construction costs, billings, and collections from the customer:

Contract billings Costs incurred Expected costs to complete Collections from customer 2021

1. What are the journal entries that Tiger Construction would record in 2021 2022, and 2023 assuming they recognize revenue over time?

2. "What are the journal entries that tiger construction would record in 2021, 2022, and 2023 assuming they recognize revenue upon completion?"

Contract billings Costs incurred Expected costs to complete Collections from customer 2021 $75 $60 $200 $65 2022 $175 $140 $50 $165 2023 $100 $80 $0 $120

Step by Step Solution

★★★★★

3.36 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Head Incurring costs To Account Payable Billing To Construction in progress Bill Pay... View full answer

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!

XYZ is a calendar-year corporation that began business on January 1, 2024. For the year, it reported the following information in its current-year audited income statement. Notes with important tax...

The Fender Construction Company receives a contract to build a building over a period of three years for a price of $700,000. Information relating to the performance of the contract is summarized as...

A heavy construction firm has been awarded a contract to build a large concrete dam. It is expected that a total of 8 years will be required to complete the work. The firm will buy $600,000 worth of...

In early 2003, Skyline Corp. won a contract to build a rapid transit line connecting downtown Vancouver to the airport and the suburb of Richmond (the RAV line). The contract was for $1.9 billion to...

Citation Builders, Inc. builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging...

Thompson Instruments (TI) has proprietary technology and produces products for three market segments: commercial, defense, and international. Thompson has three profit centers organized by the same...

Citation Builders, Inc., builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging...

Refer to the salesforce.com financial statement excerpts given below to answer the questions. On January 31, 2019, the price of salesforce.com stock was $151.97, and there were 770 million shares of...

Butler County issued $2,000,000 of 9-month, 9% bond anticipation notes to provide financing for construction of a county baseball stadium. This prevented delays in beginning the project, which had...

Easton Electronics in Irvine, California, is a contract manufacturer that assembles complex solid- state circuit boards for advanced technology companies in the aerospace and health sciences...

Two events are observed in a frame of reference S to occur at the same space point, the second occurring 1.80 s after the first. In a second frame S' moving relative to S, the second event is...

Assume Amia Corporation completed the following transactions. E (Click the icon to view the transactions.) Requirement 1. For each transaction, show what Amia would report for investing activities on...

I ) All of the following statements with respect to effective recordkeeping are true, excel Records should identify the source of income in order to determine if an Income ftem cable or nontaxable....

Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material...

Based on your knowledge of the reactivity of the different types of hydrocarbons articulate an argument for using this technique for this determination.

Problem 3- Cost segregation Claire Company manufactures organic cosmetics and has summarized the following monthly costs observed at various activity levels over their first year of operations....

1. Use the four steps of the high-low method to estimate total fixed costs per month and the variable cost per machine hour. State your results in the cost equation form Y = f + vX by filling in the...

Ions of calcium, Ca2+, are ____________________ with argon gas. Covalent bonds typically form between ____________________ atoms. A _____________________ structure shows the arrangement of electrons...

what strategies could be put in place to lift the performance of project team members of a social media campaignand what recognition could be given when performance goals were met. what strategies...

Application Applying Accounting Standards Managers must make decisions with respect to the financial reporting necessary to apply accounting standards. Consider the article ?Halliburton: Accounting...

2. "What are the journal entires that tiger construction would record in 2021, 2022, and 2023 assuming they recognize revenue upon completion?" Tiger Construction is awarded a contract to build a...

5) (2 pts) Tiger Construction begins a project on February 1, 2018. The project is expected to take 2.5 years to complete. The total contract price is $700,000. Information related to the first two...

Autosave I () D v Home Insert Draw Aptos (Body) v 5 B I U Page 1 0of 3 1337 words 0= Design v Layout References v A A Aav x, X | Av & A~ English (United States) @- 11.2 Saved to my Mac v Review...

CASE 11.1: Minority Set-Asides Richmond, Virginia, the former capital of the Confederacy, is not the sort of place one would normally associate with controversial efforts at affirmative action. But...