Business, 31.05.2021 14:50 raquelle66

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,030,000. During 2021, costs of $2,010,000 were incurred with estimated costs of $4,010,000 yet to be incurred. Billings of $2,510,000 were sent, and cash collected was $2,260,000. In 2022, costs incurred were $2,510,000 with remaining costs estimated to be $3,615,000. 2022 billings were $2,760,000 and $2,485,000 cash was collected. The project was completed in 2023 after additional costs of $3,810,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Required:
a. Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method.
b. Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred).
c. Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred).
d. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021.
e. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 15:30, Kiaraboyd9366

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?

Answers: 3

continue

Business, 22.06.2019 18:50, saltytaetae

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)

Answers: 3

continue

Business, 22.06.2019 20:10, NorbxrtThaG

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost. refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account

Answers: 3

continue

Business, 23.06.2019 01:50, adalan6986

Exhibit 34-1 country a country b good x 90 60 30 0 good ygood x good y 0 30 60 90 30 20 10 20 40 60 refer to exhibit 34-1. considering the data, which of the following term to? a. 1 unit of y for 1 unit of x b. 1 unit of y for 0.75 units of x c. 1 unit of y for 0.25 units of x d. 1 unit of y for 1.50 units of x e. all of the above s of trade would both countries agree 8. it -

Answers: 2

continue

You know the right answer?

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to b...