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: 2021 7,650,000 2022 3,725,000 6,125,000 6,000,000 7,000,000 6,000,000 5,500,000 7,100,000 6,400,000 Cost Incurred during the year Estimated total costs to complete Billings during the year Cash collections during the year BU recognizes revenue over time according to percentage of completion. 9,350,000 2023 6,625,000 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.
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: 2021 7,650,000 2022 3,725,000 6,125,000 6,000,000 7,000,000 6,000,000 5,500,000 7,100,000 6,400,000 Cost Incurred during the year Estimated total costs to complete Billings during the year Cash collections during the year BU recognizes revenue over time according to percentage of completion. 9,350,000 2023 6,625,000 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.
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
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