Q7. Revenue recognition for long-term contracts ( 16 points) Assume that Hardhat Construction Company has...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Q7. Revenue recognition for long-term contracts ( 16 points) Assume that Hardhat Construction Company has a non-cancellable contract to construct a $4.5-million bridge at an estimated cost of $4 million. 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, Hardhat has revised the estimated total cost from $4,000,000 to $4,050,000.) Assume that progress billings are non-refundable. Prepare all 2023 and 2024 journal entries required for Hardhat to account for this contract. (Note: Use the percentage of completion method for this question.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Q7. Revenue recognition for long-term contracts ( 16 points) Assume that Hardhat Construction Company has a non-cancellable contract to construct a $4.5-million bridge at an estimated cost of $4 million. 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, Hardhat has revised the estimated total cost from $4,000,000 to $4,050,000.) Assume that progress billings are non-refundable. Prepare all 2023 and 2024 journal entries required for Hardhat to account for this contract. (Note: Use the percentage of completion method for this question.) 