Please Solve with Explanation Assume that Cullumber Construction Company has a non-cancellable contract to construct a $5,450,000bridge at an estimated cost of $4,000,000. The contract is to start in July 2023, and the bridge is to becompleted in October 2025. The following data pertain to the construction period. (Note that, by the endof 2024, Cullumber has revised the estimated total cost from $4,000,000 to $4,015,000.) Assume thatprogress billings are non-refundable. Assume that the company uses the completed-contract method.Costs to date (12/31)Estimated costs to complete (12/31)Progress billings during the yearCash collected during the year2023$1,000,0003,000,000957,000774,0002024$2,890,800(To record progress billings)enter an account title to record collectionsenter an account title to record collections(To record collections)1,124,200enter an account title to record revenuesenter an account title to record revenuesenter an account title to record revenues(To record revenues)2,422,0001,881,0002025$4,015,0000What would the journal entries be for 2025? (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter 0 for the amounts. List all debit entries before credit entries.)2,071,0002,795,000Account Titles and ExplanationDebitCreditenter an account title to record cost of construction enter a debit amount enter a credit amountenter an account title to record cost of construction enter a debit amount enter a credit amount(To record cost of construction)enter an account title to record progress billings enter a debit amount enter a credit amountenter an account title to record progress billings enter a debit amount enter a credit amountenter a debit amount enter a credit amountenter a debit amount enter a credit amountenter a debit amount enter a credit amountenter a debit amount enter a credit amountenter a debit amount enter a credit amount

A long-term contract usually spans over multiple periods and accordingly the items like costs,…

Assume that Cullumber Construction Company has a non-cancellable contract to construct a $5,450,000 bridge at an estimated cost of $4,000,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Cullumber has revised the estimated total cost from $4,000,000 to $4,015,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 $1,000,000 3,000,000 957,000 774,000 2024 $2,890,800 1,124,200 2,422,000 1,881,000 2025 $4,015,000 0 2,071,000 2,795,000 What would the journal entries be for 2025? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Assume that Cullumber Construction Company has a non-cancellable contract to construct a $5,450,000 bridge at an estimated cost of $4,000,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Cullumber has revised the estimated total cost from $4,000,000 to $4,015,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 $1,000,000 3,000,000 957,000 774,000 2024 $2,890,800 1,124,200 2,422,000 1,881,000 2025 $4,015,000 0 2,071,000 2,795,000 What would the journal entries be for 2025? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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