My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to b
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,450,000. During 2018, costs of $2,180,000 were incurred, with
estimated costs of $4,180,000 yet to be incurred. Billings of
$2,716,000 were sent, and cash collected was $2,430,000. In 2019,
costs incurred were $2,716,000 with remaining costs estimated to be
$3,870,000. 2019 billings were $2,966,000, and $2,655,000 cash was
collected. The project was completed in 2020 after additional costs
of $3,980,000 were incurred. The company’s fiscal year-end is
December 31. This project does not qualify for revenue recognition
over time.
Required: 1. Calculate the amount of revenue and gross profit or
loss to be recognized in each of the three years.
2a. Prepare journal entries for 2018 to record the transactions
described (credit “various accounts” for construction costs
incurred).
2b. Prepare journal entries for 2019 to record the transactions
described (credit “various accounts” for construction costs
incurred).
3a. Prepare a partial balance sheet to show the presentation of
the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the presentation of
the project as of December 31, 2019.
