9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completedin 2024. Cost and other data are presented below20232024cost incurred during the year469,000 $1,050,000estimated cost to complete871,000 $billings during the year480,000 $1,270,000cash collections during the year380,000 $1,370,000YearGeneral JournalDebitCreditAssume that Beavis recognizes revenue on this contract over time according to percentage of completionRequired:a.2023a.b.Record the entry for costs incurred during the year 2023.Record the entry for billings during the year 2023.b.2023c.d.e.f.g.Record the entry for cash collections during the year 2023.Record the entry for revenue from long-term contracts.Record the entry for costs incurred during the year 2024Record the entry for billings during the year 2024Record the entry for cash collections during the year 2024C.2023d.2023e.2024h.1.Record the entry for revenue from long-term contractsRecord the entry to close the construction accountsf.2024g.2024h.20241.2024

The revenue which has to be recognized as per the percentage of completion method is a method…

9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below cost incurred during the year estimated cost to complete billings during the year cash collections during the year 2023 2024 469,000 $ 1,050,000 871,000 $ 480,000 $ 1,270,000 380,000 $ 1,370,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: a. b. Record the entry for costs incurred during the year 2023. Record the entry for billings during the year 2023. c. d. e. f. g. h. 1. Record the entry for cash collections during the year 2023. Record the entry for revenue from long-term contracts. Record the entry for costs incurred during the year 2024 Record the entry for billings during the year 2024 Record the entry for cash collections during the year 2024 Record the entry for revenue from long-term contracts Record the entry to close the construction accounts Year General Journal Debit Credit a. 2023 b. 2023 C. 2023 d. 2023 2024 f. 2024 g. 2024 h. 2024 1. 2024

9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below cost incurred during the year estimated cost to complete billings during the year cash collections during the year 2023 2024 469,000 $ 1,050,000 871,000 $ 480,000 $ 1,270,000 380,000 $ 1,370,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: a. b. Record the entry for costs incurred during the year 2023. Record the entry for billings during the year 2023. c. d. e. f. g. h. 1. Record the entry for cash collections during the year 2023. Record the entry for revenue from long-term contracts. Record the entry for costs incurred during the year 2024 Record the entry for billings during the year 2024 Record the entry for cash collections during the year 2024 Record the entry for revenue from long-term contracts Record the entry to close the construction accounts Year General Journal Debit Credit a. 2023 b. 2023 C. 2023 d. 2023 2024 f. 2024 g. 2024 h. 2024 1. 2024

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,810,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 447,000 $ 1,110,000 Estimated costs to complete 1,043,000 0 Billings during the year 405,000 1,405,000 Cash collections during the year 305,000 1,505,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,810,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 447,000 $ 1,110,000 Estimated costs to complete 1,043,000 0 Billings during the year 405,000 1,405,000 Cash collections during the year 305,000 1,505,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,880,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 426,000 $ 1,180,000 Estimated costs to complete 994,000 0 Billings during the year 440,000 1,440,000 Cash collections during the year 340,000 1,540,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,860,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 432,000 $ 1,160,000 Estimated costs to complete 1,008,000 0 Billings during the year 430,000 1,430,000 Cash collections during the year 330,000 1,530,000 Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2023 and 2024. Note: Leave no cells blank - be certain to enter "0" wherever required.
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ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?
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