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

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Definitions:

John Ogbu

An anthropologist known for his work on minority education in the United States, particularly regarding the concept of "voluntary" and "involuntary" minorities.

Social Capital

The networks of relationships among people who live and work in a particular society, enabling that society to function effectively, often associated with trust, cooperation, and reciprocity.

Double-Edged Sword

A situation or action that has both positive and negative outcomes or implications.

Model Minority

A stereotype applied to a particular demographic group suggesting that they achieve a higher degree of socioeconomic success than the population average, often oversimplifying real challenges.