Refer to Craft Construction. Assume that Craft uses the completed-contract method for revenue recognition. Make the appropriate journal entries for 2016 and 2017 for Craft Company

What will be an ideal response?

Answer:
2016

Construction in Progress
225,000

Cash or A/P

225,000


Accounts Receivable
200,000

Billings on Construction

200,000


Cash
150,000

Accounts Receivable

150,000


Cost of Construction
225,000

Revenue

225,000


2017

Construction in Progress
550,000

Cash or A/P

550,000


Accounts Receivable
700,000

Billings on Construction

700,000

Cash
750,000

Accounts Receivable

750,000

Cost of Construction
550,000

Construction in Progress
125,000

Revenue

675,000

Billings in construction contract
900,000

Construction in Progress

900,000

Business

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