The Town of Westchester hired Moose Jaw Construction Company to construct! motorized traffic under a fixed-price contract. It will take 3 years to finish construction of the bridge. Information relating to the costs and billings for this contract follows: Contract price Total estimated construction cost at contract inception Total costs incurred to date Estimated costs to complete Customer billings to date Colllections to date $ 28,957,100 $ 19,838,691 Required: Moose Jaw Construction Company uses the percentage of completion method to account for the bridge construction project. 2023 19,863,691 2021 2022 $ $ 6,448,056 $ 15,045,464 4,793,227 S $13,390,635 $ $ 9,652,400 $ 19,304,700 $ 28,957,100 $ 6,756,700 $ 17,374,200 $ 26,061,400 1. Calculate Moose Jaw Construction Company's gross profit for all years of the project. Round all calculations to 2 decimal points 2. Prepare Moose Jaw Construction Company's journal entries for the 2022 year 3. Determine the revenue to be recognized by Moose Jaw Construction Company for the 2021, 2022 and 2023 years, assuming the completed contract method is used

The Town of Westchester hired Moose Jaw Construction Company to construct! motorized traffic under a fixed-price contract. It will take 3 years to finish construction of the bridge. Information relating to the costs and billings for this contract follows: Contract price Total estimated construction cost at contract inception Total costs incurred to date Estimated costs to complete Customer billings to date Colllections to date $ 28,957,100 $ 19,838,691 Required: Moose Jaw Construction Company uses the percentage of completion method to account for the bridge construction project. 2023 19,863,691 2021 2022 $ $ 6,448,056 $ 15,045,464 4,793,227 S $13,390,635 $ $ 9,652,400 $ 19,304,700 $ 28,957,100 $ 6,756,700 $ 17,374,200 $ 26,061,400 1. Calculate Moose Jaw Construction Company's gross profit for all years of the project. Round all calculations to 2 decimal points 2. Prepare Moose Jaw Construction Company's journal entries for the 2022 year 3. Determine the revenue to be recognized by Moose Jaw Construction Company for the 2021, 2022 and 2023 years, assuming the completed contract method is used

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10C

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