At december 31 2010 the estimated future costs to complete

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Reference no: EM13482606

Turner, Inc. began work on a $7,000,000 contract in 2010 to construct an office builidng. During 2010, Turner, Inc. incurred costs of $1,700,000, billed thier customers for $1,200,000, and collected $960,000. At December 31, 2010, the estimated future costs to complete the project total $3,300,000. Prepare Turner's 2010 journal entries using the percentage-of-completion method.

Construction in Process........................................................................1,700,000

Materials, Cash, Payables, etc....................................................1,700,000

Accounts Receivable............................................................................1,200,000

Billingson Construction in Process........................................... 1,200,000

Cash.......................................................................................960,000

Accounts Receivable..................................................................960,000

Construction in Process........................................................................680,000
[($1,700,000 ÷ 5,000,000) X$2,000,000]

Construction Expenses.........................................................................1,700,000

Revenue from Long-Term Contracts..........................................2,380,000

($7,000,000,000X 34%)

Reference no: EM13482606

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