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The White Company uses the completed-contract method of accounting for construction and has the following data relating to a 3-year project:
19A
19B
19C
Total
Construction costs
$50,000
$25,000
$35,000
$110,000
Billings
50,000
25,000
100,000
Collections
30,000
Estimated completion
costs as of year-end
40,000
35,000
-
The contract price is $100,000.
In 19B the company realized it would incur a $10,000 loss, as follows:
Costs so far
$ 75,000
Estimated remaining costs
Estimated total costs
Selling price
Loss
$ 10,000
Prepare the journal entries for all 3 years.
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