Sunland Construction Company began work on a $420,000 construction contract in 2025. During 2025, Sunland incurred costs of $262.000, billed its customer for $209,500, and collected $170,500. At December 31, 2025, the estimated additional costs to complete the project total $160,240. Prepare Sunland's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost- recovery 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. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round intermediate calculations.) No. Account Titles and Explanation (a) (b) Construction Expenses Construction in Process Revenue from Long-Term Contracts Loss from Long-Term Contracts Construction in Process Debit 262640 2240 Credit 2240 260400 2240

Sunland Construction Company began work on a $420,000 construction contract in 2025. During 2025, Sunland incurred costs of $262.000, billed its customer for $209,500, and collected $170,500. At December 31, 2025, the estimated additional costs to complete the project total $160,240. Prepare Sunland's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost- recovery 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. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round intermediate calculations.) No. Account Titles and Explanation (a) (b) Construction Expenses Construction in Process Revenue from Long-Term Contracts Loss from Long-Term Contracts Construction in Process Debit 262640 2240 Credit 2240 260400 2240

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 41P

See similar textbooks

Similar questions

Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
Oriole Construction Company began work on a $420,000 construction contract in 2025. During 2025, Oriole incurred costs of $264, 500, billed its customber for $207,000, and collected $179,500. December 31, 2025, the estimated additional costs to complete the project total $159, 650. Prepare Oriole's journal entry to record profit or loss, if any, using (a) the percentage - of - completion method and (b) the cost-recovery method.
Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020, Splish incurred costs of $ 267,500, billed its customer for $ 201,500, and collected $ 176,000. At December 31, 2020, the estimated additional costs to complete the project total $ 157,575.Prepare Splish’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Kingbird Construction Company began work on a $418,500 construction contract in 2020. During 2020, Kingbird incurred costs of $285,500, billed its customer for $233,000, and collected $172,000. At December 31, 2020, the estimated additional costs to complete the project total $155,765.Prepare Kingbird’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract 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. Round answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit (a) enter an account title to record the transaction using the percentage-of-completion method enter a debit amount enter a credit amount enter an account title to record the transaction using the percentage-of-completion method enter a debit…
Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to complete the project total $155,835. Prepare Headland's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract 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. Round answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit (a) (b)
HuskiesBest Construction Company began work on a $420,000 construction contract in 2020. During 2020, HuskiesBest incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2020, the estimated additional costs to complete the project total $162,000. Prepare HuskiesBest 's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Culver Construction Company began work on a $402, 000 construction contract in 2020. During 2020, Culver incurred costs of $252,000, billed its customer for $210, 500, and collected $177,000. At December 31, 2020, the estimated additional costs to complete the project total $162, 405. Prepare Culver's journal entry to record profit or loss, if any, using (a) the percentage-of - completion method and (b) the completed - contract method.
Archer Construction Company began work on a $420,000 construction contract in 2020. During 2020, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2020, the estimated additional costs to complete the project total $162,000. Prepare Archer's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Headland Construction Company began work on a $404,000 construction contract in 2020. During 2020, Headland incurred costs of $273,000, billed its customer for $232,000, and collected $182,000. At December 31, 2020, the estimated additional costs to complete the project total $163,660.Prepare Headland’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
- Oriole Construction Company began work on a $407,000 construction contract in 2025. During 2025, Oriole incurred costs of $272,000, billed its customer for $217,000, and collected $177,500. At December 31, 2025, the estimated additional costs to complete the project total $157,020. Prepare Oriole's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery 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 O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round Intermediate calculations.) No. Account Titles and Explanation (a) (b) eTextbook and Medial List of Accounts Debit Credit
Heart, Inc. consistently uses the percentage of completion method of recognizing income. During 2018, Heart started work on a P3,000,000 fixed price project. The accounting records disclosed the following data for the year ended December 31, 2018: Costs incurred, P930,000; Estimated cost to complete, P2,170,000; Progress billings, P1,100,000; Collections, P700,000. How much is the balance of Construction in Progress account in 2018?
During 2025, Crane Company started a construction job with a contract price of $1,590,000. The job was completed in 2027. The following information is available. \table [[, 2025, 2026 2027], [Costs incurred to date,$410, 000, $901, 180, $1,067, 000. please calculate the gross profit for years 2025 - 2027 using the percentage - of - completion method