Panama Builders, Inc

question 31

Essay

Panama Builders, Inc. signed a contract to build a certain project for $4,000. In 2016, $800 of cost was incurred and
$400 was billed to the customer and collected. At the end of 2016, it was estimated that it would take $2,400 to complete the project. In 2017, actual additional costs to complete the project amounted to $2,600. The remainder of the contract price was billed in 2017 and collected.
Required:
Prepare all journal entries for both years assuming Panama satisfies its performance obligation over time

---

Definitions:

Positive Organizational Politics

Activities within an organization that are aimed at improving personal or group reputation or interests in a way that also benefits the organization.

Views About Power

The perspectives and beliefs individuals or groups hold regarding the distribution, use, and impact of power within various contexts.

Political Processes

The methods and procedures through which political activities, decisions, and policies are debated, formulated, and implemented.

Organizational Adaptation

The process by which organizations adjust and evolve in response to changes in their external environment.