BU Contractors received a begun in 2021 and completed in 2023. Cost and other data are presented below Cost Incurred during the year Estimated total costs to complete llings during the year sh collections during the year 2022 3,725,000 6,625,000 6,125,000 6,000,000 7,000,000 6,000,000 5,500,000 7,100,000 6,400,000 2021 7,650,000 9,350,000 2023 entage of completion.
BU Contractors received a begun in 2021 and completed in 2023. Cost and other data are presented below Cost Incurred during the year Estimated total costs to complete llings during the year sh collections during the year 2022 3,725,000 6,625,000 6,125,000 6,000,000 7,000,000 6,000,000 5,500,000 7,100,000 6,400,000 2021 7,650,000 9,350,000 2023 entage of completion.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 26E
Related questions
Question
Transcribed Image Text:BU Contractors received a contract to construct an office building for $19,000,000. Construction was
begun in 2021 and completed in 2023. Cost and other data are presented below:
Cost Incurred during the year
Estimated total costs to complete
2021
7,650,000
9,350,000
2022
3,725,000
6,125,000
2023
6,625,000
6,000,000
7,000,000
6,000,000
5,500,000 7,100,000 6,400,000
Billings during the year
Cash collections during the year
BU recognizes revenue over time according to percentage of completion.
Required:
Prepare all journal entries to record costs, billings, collections, and profit recognition.
Compute the Gross Profit on the job for each year. Compute the ending Accounts Receivable for
each year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT