P_08-21_Perfectionist Construction Company
accountguruPerfectionist Construction Company was the low bidder on an office building construction contract. The contract bid was$9,000,000, with an estimated cost to complete the project of$7,000,000. The contract period was 30 months starting May 1, 2014.Because of changes requested by the customer, the contract price was adjusted downward to$8,600,000 on May 1, 2015. A record of construction activities for the years2014–2017 is as follows:
Year | Actual Cost | Progress Billings | Cash Receipts | Remaining Cost |
2014 | $1,900,000 | $2,500,000 | $1,900,000 | $5,150,000 |
2015 | 3,600,000 | 3,400,000 | 3,100,000 | 1,600,000 |
2016 | 1,670,000 | 2,700,000 | 2,500,000 | 0 |
2017 | 1,100,000 |
Prepare all journal entries and the relevant balance sheet entries for 2014–2017under thepercentage-of-completion method of revenue recognition
12 years ago
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p_08-21_perfectionist_construction_company.xlsx
