Please post the journal entries for Tuscany Boatbuilders was recently awarded a

Question

Please post the journal entries for Tuscany Boatbuilders was recently awarded a $16,700,000 contract to construct a luxury liner for Queen Cruiseliners Inc. Tuscany estimates it will take 42 months to complete the contract. the company uses the cost-to-cost method to estimate profits. The following information details the actual and estimated costs for the years 2014-2017. 2014.......annual cost-current year $6,400,000 Anonymous posted yesterday Edit Delete 2014 estimated cost to complete $8,700,000 2015 actual cost current year 5,200,000 estimated cost to complete 4,600,000 2016 actual cost current year 4,100,000 estimated cost to complete 1,500,000 2017 actual cost current year 1,065,000 estimated cost to complete 0

Explanation / Answer

Year 2014 2015 2016 2017 Contract price $     16,700,000 $   16,700,000 $   16,700,000 $   16,700,000 Actual cost -Current year $       6,400,000 $   11,600,000 $   15,700,000 $   16,765,000 Estimated cost to complete $       8,700,000 $     4,600,000 $     1,500,000 $                 -   Total Estimated cost $     15,100,000 $   16,200,000 $   17,200,000 $   16,765,000 Total Estimated profit $       1,600,000 $        500,000 $       (500,000) $        (65,000) 12/31/2014 Cost of construction $     15,100,000 Construction in process $   15,100,000 12/31/2014 Construction in process $       1,600,000 Construction revenue $     1,600,000 12/31/2015 Cost of construction $     16,200,000 Construction in process $   16,200,000 12/31/2015 Construction in process $        (500,000) Construction revenue $       (500,000) 12/31/2016' Cost of construction $     17,200,000 Construction in process $   17,200,000 12/31/2016' Construction loss $        (500,000) Construction in process $       (500,000) 12/31/2017 Cost of construction $     16,765,000 Construction in process $   16,765,000 12/31/2017 Construction loss $          (65,000) Construction loss $        (65,000)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.