In 2020, Pharoah Contractors began construction on an office building. The building was expected to...
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In 2020, Pharoah Contractors began construction on an office building. The building was expected to cost $47,620,000 in total, and was expected to be completed in early 2022. The customer was to pay Pharoah $50,710,000 for the building. Pharoah was able to use percentage-of-completion accounting for the project, and at the end of 2020 had accumulated $11,905,000 in cost. Pharoah estimated that the costs to complete the construction were in line with the original expected total costs. During 2021, there was a lumber shortage, a strike by construction workers, and various other incidents that dramatically raised costs in the construction industry. As a result, at the end of 2021, Pharoah estimated that the office building would cost $4,060,000 in total. To the end of 2021, Pharoah had spent $39,276,800 on constructing the office building. Calculate the revenue to be recognized by Pharoah for the 2021 fiscal year. Revenue to be recognized $ Prepare the journal entry to record revenue, construction expenses. (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 for the amounts.) Account Titles and Explanation Debit Credit
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