Dixon Construction Company was awarded a contract to construct an interchange at

Question

Dixon Construction Company was awarded a contract to construct an interchange at the junction of U.S. 94 and Highway 30 at a total contract price of $11,300,000. The estimated total costs to complete the project were $8,300,000.

PART (a) Make the entry to record construction costs of $4,399,000, on construction in process to date.

PART (b) Make the entry to record progress billings of $2,930,000.

PART (c) Make the entry to recognize the profit that can be recognized to date, on a percentage-of-completion basis.

Explanation / Answer

PART (a) contruction in process Dr. $4399000

To cash $4399000

PART (b)    Accounts recievable Dr.$2930000

To progress Billing / service revenue $2930000

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