Craft Construction
Craft Construction Entered into a Contract to Construct

question 87

Essay

Craft Construction
Craft Construction entered into a contract to construct a generator station for a utility customer. The project was started in 2016 and completed in 2017. Cost and other information is presented below.
$$\begin{array} { l r c } & \underline { 2016 } & \underline { 2017 } \\\text { Costs incurred during the year } & \$ 225,000 & \$ 550,000 \\\text { Estimated costs to complete } & 450,000 & - 0 - \\\text { Billings during the year } & 200,000 & 700,000 \\\text { Cash collections during the year } & 150,000 & 750,000\end{array}$$
-Refer to Craft Construction. Assume that Craft uses the zero-gross-profit approach for revenue recognition. Make the appropriate journal entries for 2016 and 2017 for Craft Company.

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Definitions:

Antibodies

Proteins produced by the immune system to identify and neutralize foreign objects like bacteria and viruses.

Universal Donor

Refers to individuals with O-negative blood type, whose red blood cells can be transferred in a transfusion to individuals of any other blood type without causing an adverse reaction.

Anti-B Antibodies

Antibodies present in the plasma of individuals with blood type A, which react against B antigens in red blood cells.

Antigen A

A specific type of antigen on the surface of red blood cells, determining part of an individual's blood type in the ABO system.