Pensacola Building Co. signed a contract to build a road over a period of three years for a price of $600,000.
Information relating to the performance of the contract is summarized below:
Required:
a. Assuming Pensacola satisfies its performance obligation over time, show how Construction in Progress would be disclosed on the balance sheet at December 31, 2016.
b. Assuming Pensacola satisfies its performance obligation over time, prepare all 2017 entries.

Question

Pensacola Building Co. signed a contract to build a road over a period of three years for a price of $600,000.
Information relating to the performance of the contract is summarized below: 
 Required: 
a. Assuming Pensacola satisfies its performance obligation over time, show how Construction in Progress would be disclosed on the balance sheet at December 31, 2016.
b. Assuming Pensacola satisfies its performance obligation over time, prepare all 2017 entries.

Quizplus · Accepted Answer

The Answer of Pensacola Building Co. signed a contract to build a road over a period of three years for a price of $600,000.
Information relating to the performance of the contract is summarized below: 
 Required: 
a. Assuming Pensacola satisfies its performance obligation over time, show how Construction in Progress would be disclosed on the balance sheet at December 31, 2016.
b. Assuming Pensacola satisfies its performance obligation over time, prepare all 2017 entries.