Exercise 18-36 Marigold Construction Company uses the percentage-of-completion method of accounting. In 2020, Marigold began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2020 2021 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 –0– Billings during the year 413,000 2,234,000 Collections during the year 351,000 1,530,000 Your answer is incorrect. Try again. What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is correct. Assuming the same facts as those above except that Marigold uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2021? Revenue recognized in 2021 $ SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is partially correct. Try again. Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit (To record cost of of construction.) (To record progress billings.) (To record collections.) (To recognize revenue.)

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Current Liabilities And Payroll

Section: Chapter Questions

Problem 10.4BPR

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Exercise 18-36

Marigold Construction Company uses the percentage-of-completion method of accounting. In 2020, Marigold began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow:

	2020	2021
Costs incurred during the year	$615,980	$1,420,000
Estimated costs to complete, as of December 31	1,005,020	–0–
Billings during the year	413,000	2,234,000
Collections during the year	351,000	1,530,000


	Your answer is incorrect. Try again.

What portion of the total contract price would be recognized as revenue in 2020? In 2021?

Revenue recognized in 2020		$
Revenue recognized in 2021		$

SHOW LIST OF ACCOUNTS

LINK TO TEXT


	Your answer is correct.

Assuming the same facts as those above except that Marigold uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2021?

Revenue recognized in 2021

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT


	Your answer is partially correct. Try again.

Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.)

Account Titles and Explanation	Debit	Credit


(To record cost of of construction.)


(To record progress billings.)


(To record collections.)



(To recognize revenue.)

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