McCombs Contractors Received a Contract to Construct a Mental Health

question 289

Essay

McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2017 and completed in 2018. Cost and other data are presented below:


-Assume that McCombs recognizes revenue on this contract over time according to percentage of completion.
Required:
Prepare all journal entries to record costs, billings, collections, and profit (loss) recognition. Round your answers to the nearest whole dollar.

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Definitions:

Developing Partnerships

The process of creating formal alliances between businesses or organizations to leverage resources, share risks, and increase competitive advantages.

Interpersonal Determinant

Influences on decision-making that stem from interactions with other people, such as peer pressure, cultural norms, or communication with family members.

Family Influences

Refer to the impact that family members have on an individual's attitudes, behavior, beliefs, and values throughout their life.

Attitudes

A person's feelings or opinions about someone or something, typically reflected in their behavior.