Soborne Construction,Inc.,is constructing a building for another company.Construction on the building began in 2014 and is expected to be complete in 2015.The fixed contract price was $1,500,000.During 2014,the company made the following entries:

Required:
Briefly explain the 2014 entries and why they occurred.Show the calculations and include in your explanations the nature of and the reporting of the Contract Billings account.

Question

Soborne Construction,Inc.,is constructing a building for another company.Construction on the building began in 2014 and is expected to be complete in 2015.The fixed contract price was $1,500,000.During 2014,the company made the following entries:
  
Required:
Briefly explain the 2014 entries and why they occurred.Show the calculations and include in your explanations the nature of and the reporting of the Contract Billings account.

Quizplus · Accepted Answer

The Answer of Soborne Construction,Inc.,is constructing a building for another company.Construction on the building began in 2014 and is expected to be complete in 2015.The fixed contract price was $1,500,000.During 2014,the company made the following entries:
  
Required:
Briefly explain the 2014 entries and why they occurred.Show the calculations and include in your explanations the nature of and the reporting of the Contract Billings account.