At december 31 2010 the estimated future costs to complete

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

Questions Cloud

For each of the following 5 conditions insert the : for each of the following 5 conditions insert the appropriate number into each blank to indicate the type of adjusting

Lance lawn services reports warranty expense by estimating : lance lawn services reports warranty expense by estimating the amount that eventually will be paid to satisfy

A promissory note received from a customer in exchange for : 1 a credit sale of 3275 to a customer would result ina a debit to the accounts receivable account in the general

Prepare a tabular analysis of the transactions using the : barones repair shop was started on may 1 by nancy barone. a summary of may transactions is presented below.1. invested

At december 31 2010 the estimated future costs to complete : turner inc. began work on a 7000000 contract in 2010 to construct an office builidng. during 2010 turner inc. incurred

500 lost units were 60 completeas to material and : 50 000 units were received from preceding department 9000units were still in process at the end of month complete

Holmes company has a factory machine with a book value of : holmes company has a factory machine with a book value of 89851 and a remaining useful life of 4 years. a new machine

Actual factory overhead for that period was rs 42000 : factory overhead absorption rate of a pharmaceutical is rs2.50. budgeted factory overhead at two activity levels is

Keller company requires its marketing managers to submit : keller company requires its marketing managers to submit estimated cost-volume-profit data on all requests for new

User Account

All Pages