Calculate the amount of revenue to be recognized in 2020 and 2021. Calculate the construction costs to be expensed in 2021. Prepare the journal entry at December 31, 2021, to record long-term contract revenues, expenses, and losses for 2021.
Calculate the amount of revenue to be recognized in 2020 and 2021. Calculate the construction costs to be expensed in 2021. Prepare the journal entry at December 31, 2021, to record long-term contract revenues, expenses, and losses for 2021.
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 9MC
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Question
- Calculate the amount of revenue to be recognized in 2020 and 2021.
- Calculate the construction costs to be expensed in 2021.
- Prepare the
journal entry at December 31, 2021, to record long-term contract revenues, expenses, and losses for 2021. - What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021?
- Show how the construction contract would be reported on the SFP and the income statement for the year ended December 31, 2021.
- Assume that Cullumber uses the zero-profit or completed-contract method. What would be the journal entry recorded on December 31, 2021?
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