Coquel Company Has a Non-Cancellable Contract to Construct a Bridge

question 25

Essay

Coquel Company has a non-cancellable contract to construct a bridge for an estimated cost of $ 1,950,000. The contract is to start in July 2020, and the bridge is to be completed in September 2022. The following data pertain to the construction period. Assume that progress billings are non-refundable.
$\begin{array}{c}\begin{array}{lll}\\\text {Costs to date}\\\text {Estimated costs to complete}\\\text {Progress billings during theyear}\\\text {Cash collected during the year}\end{array}\begin{array}{r}2020\\\hline\$ 360,000 \\1,260,000 \\305,00\\280.000\end{array}\begin{array}{r}2021\\\hline \$ 900,000 \\380,000\\765,000\\760.000\end{array}\begin{array}{r}2022\\\hline\$ 390,000\\-\\ 1,200,000 \\ 2,000,000 \end{array}\end{array}$
Instructions
Assuming that Coquel Company uses the percentage of completion method prepare the appropriate journal entries.

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Definitions:

Finances

The management of money and other assets by an individual, household, or organization.

Adult Child-Grandparent Relationships

The interactions and bonds between adult grandchildren and their grandparents, which can play significant roles in family dynamics and individual well-being.

Grandparents

The parents of one's parents, often playing a role in family support and upbringing of grandchildren.

Raise

An increase, usually referring to an increase in salary or wage.