On January 1, 2016, a firm entered a five-year construction contract with a contract price...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2016, a firm entered a five-year construction contract with a contract price of $10,000,000. On December 31, 2016, the firm estimated the Gross Profit (Loss) for the contract to be $1,000,000 profit. On December 31, 2017, the firm estimated the Gross Profit (Loss) for the contract to be ($400,000) loss. Under the Completed Contract Method, the journal entry to record Gross Profit (Loss) should include:
a.
A debit to CIP of $1,000,000.
b.
No Entry.
c.
A credit to CIP of $1,400,000.
d.
A credit to CIP of $400,000.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.