Hardhat Construction Company has a contract to construct a $4,500,000 bridge at an estimated cost of $4,000,000. The contractis to start in July 2014, and the bridge is to be completed in October 2016. The following data pertain to the construction period. 2014 2015 2016 Costs to date $1,000,000 3,000,000 900,000 $2,916,000 1,134,000 2,400,000 1,750,000 $4,050,000 Estimated costs to complete Progress billings during the year Cash collected during the year 1,200,000 2,000,000 750,000 Record the journal entries for 2014, 2015, and 2016 using the percentage of completion method Record the income statement and balance sheet for 2014, 2015, and 2016

Hardhat Construction Company has a contract to construct a $4,500,000 bridge at an estimated cost of $4,000,000. The contractis to start in July 2014, and the bridge is to be completed in October 2016. The following data pertain to the construction period. 2014 2015 2016 Costs to date $1,000,000 3,000,000 900,000 $2,916,000 1,134,000 2,400,000 1,750,000 $4,050,000 Estimated costs to complete Progress billings during the year Cash collected during the year 1,200,000 2,000,000 750,000 Record the journal entries for 2014, 2015, and 2016 using the percentage of completion method Record the income statement and balance sheet for 2014, 2015, and 2016

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 35E

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