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 $12,000,000. The estimated total costs to complete the project were $9,000,000.
Instructions
(a) Make the entry to record construction costs of $5,400,000, on construction in process to date.
(b) Make the entry to record progress billings of $3,000,000.
(c) Make the entry to recognize the profit that can be recognized to date, on a percentage-of-completion basis.

Question

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The Answer of 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 $12,000,000. The estimated total costs to complete the project were $9,000,000.
Instructions
(a) Make the entry to record construction costs of $5,400,000, on construction in process to date.
(b) Make the entry to record progress billings of $3,000,000.
(c) Make the entry to recognize the profit that can be recognized to date, on a percentage-of-completion basis.

Dixon Construction Company Was Awarded a Contract to Construct an Interchange