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.

---

Definitions:

Alkanes

Saturated hydrocarbons consisting only of carbon (C) and hydrogen (H) atoms, with single C-C bonds.

Alkynes

Alkynes are hydrocarbons containing at least one carbon-carbon triple bond, characterized by the molecular formula C_nH_2n-2, and are known for their reactivity.

Branched Isomers

Molecules with the same molecular formula but different arrangements of atoms, resulting in branches off the main chain.

Isomers

Compounds with the same molecular formula but different structures or arrangements of atoms, resulting in various physical and chemical properties.