Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows:

	2017	2018	2019
Construction costs incurred during the year	$150,000	$242,000	$168,000
Estimated costs to complete	350,000	168,000
Billings during the year	120,000	250,000	330,000
Collections during the year	100,000	260,000	340,000

Required:

1.	Prepare journal entries for all 3 years.
2.	Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries for all 3 years.

CHART OF ACCOUNTS
Fender Construction Company
General Ledger
ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 155 Construction in Progress 156 Partial Billings 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings	REVENUE 420 Construction Revenue EXPENSES 500 Construction Expense 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense

	Assume the contract represents a single performance obligation that will be satisfied over time. Prepare journal entries on December 31 for all 3 years
1.	to record costs of construction for cash.
2.	to record partial billings.
3.	to record collections on account.
4.	to record gross profit recognized.
5.	to close out construction accounts in 2019.
	Additional Instruction

PAGE 2017

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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PAGE 2018

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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PAGE 2019

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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	Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries on December 31 for all 3 years
1.	to record costs of construction for cash.
2.	to record partial billings.
3.	to record collections.
4.	to recognize revenue at completion on 2019.
5.	to recognize expense at completion on 2019.

PAGE 2017

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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PAGE 2018

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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PAGE 2019

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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