Electric Boat, Inc., of New London, Connecticut, General Journal Entry help
Electric Boat, Inc., of New London, Connecticut, General Journal Entry help
please use the below instructions to solve the journal please.
Electric Boat, Inc., of New London, Connecticut, began operation on the construction of a new deep sea discovery submarine for the US Navy. On January 2, 2016, and entered into a contract. This project was signed for the contract price was $6,000,000 and provided for penalties of $100,000 per week for late completion. Although during 2016 the project had been on schedule for timely completion, it was completed four weeks late on August 31, 2017.
The following data pertains to the separate long-term construction projects in progress:
|
As of December 31, 2016: |
|
|
Costs incurred to date |
$2,400,000 |
|
Estimated costs to complete |
600,000 |
|
Billings on 12/31/16 |
3,150,000 |
|
Cash collection on 12/31/16 |
2,550,000 |
|
As of August 31, 2017: |
|
|
Costs incurred to date |
3,000,000 |
|
Estimated costs to complete |
0 |
|
Billing on 8/31/17 |
2,450,000 |
|
Cash collection 8/31/17 |
3,050,000 |
Additional information
>> Electric Boat accounts for its long-term construction contracts using the percentage-of- completion method.
Using the information about the Electric Boat, prepare the following general journal entries without explanation:
> 12/31/16: Costs incurred for the year
> 12/31/16: Progressive Billings & Collections for the year
> 12/31/16: Revenue Recognition for the year
> 12/31/17: Costs incurred for the year
> 12/31/17: Progressive Billings & Collections for the year
> 12/31/17: Revenue Recognition for the year
> 12/31/17: Closing for the Long Term Contract accounts
