Answered You can buy a ready-made answer or pick a professional tutor to order an original one.

QUESTION

MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows:

MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows:

                                                                                  20X1                            20X2                                                        

Costs incurred during the year                          $290,000                      $150,000 

Estimated additional cost to complete            145,000                             — 

Billings during the year                                        260,000                           265,000 

Cash collections during the year                           240,000                         285,000 

Required: Record the preceding transactions in MSK’s books assuming it recognizes revenue at a point in time when control of the completed factory is transferred to the customer at the end of the project.

Please number transactions

  • 1Prepare the entry to record the construction costs incurred. Hint: Use Cash, payables, materials, etc.
  • 2Prepare the entry to record the amounts billed to the customer.
  • 3Prepare the entry to record the cash receipts from the customer.
  • 4Prepare the entry to record the construction costs incurred. Hint: Use Cash, payables, materials, etc.
  • 5Prepare the entry to record the amounts billed to the customer.
  • 6Prepare the entry to record the cash receipts from the customer.
  • 7Prepare the entry to record revenue, expense, and completion of the project.
Show more
  • @
  • 5213 orders completed
ANSWER

Tutor has posted answer for $20.00. See answer's preview

$20.00

******

Click here to download attached files: answer.docx
or Buy custom answer
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question