E12. WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details...

E12.

WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow:

	2020	2021
Costs incurred during the year	$658,560	$1,408,000
Estimated costs to complete, as of December 31	909,440	–0–
Billings during the year	421,000	2,187,000
Collections during the year	348,000	1,527,000

(a) What portion of the total contract price would be recognized as revenue in 2020? In 2021?

Revenue recognized in 2020		$ 918,540
Revenue recognized in 2021		$ 1,268,460

(b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized?

Revenue recognized in 2020		$ 0
Revenue recognized in 2021		$ 2,187,000

(c)Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method).(Credit account titles are automatically indented when the amount is entered. Do not indent manually.
If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
For costs incurred use account Materials, Cash, Payables.)

Account Titles and Explanation	Debit	Credit


(To record cost of of construction.)


(To record progress billings.)


(To record collections.)



(To recognize revenue.)

Jun 11, 2022

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E12. WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details...

(a) What portion of the total contract price would be recognized as revenue in 2020? In 2021?

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