Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. brick construction corp. (bcc), a public company,

Brick Construction Corp. (BCC), a public company, entered into a $3 million contract to construct...

90.2K

Verified Solution

Question

Accounting

Brick Construction Corp. (BCC), a public company, entered into a $3 million contract to construct a home. Management determined that the contract represents a single performance obligation satisfied over time. BCC started work on the project in 2021 and completed work in 2023. BCC has a December 31 year end and uses an input cost method the cost-to-cost approach to determine the stage of completion.

(in $000s)

2021

2022*

2023**

Cumulative costs incurred

550

2,800

2,950

Estimated costs to complete

2,150

100

0

Progress billings during the year

850

1,750

400

Collections during the year

350

2,100

550

*This revised cost data was not known in 2021.

**This revised cost data was not known in 2022.

Required:

  1. Prepare all required summary journal entries for each of the 2021, 2022, and 2023 fiscal years for BCC.

  1. Illustrate how these amounts would be reported on the December 31, 2021, statement of financial position of BCC.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students