In the absence of specific cost breakdowns, I have provided general journal entries based on the given information. Note that the above entries following the principle of debit and credit such that the accounting equation is balanced in each case.
The Journal entries
1. To record costs incurred during 20x2:
Debit ($) Credit ($)
Construction in Progress 2,523,000
Various accounts (Labor, materials, etc.) 2,523,000
2. To record billings during 20x2:
Accounts Receivable 2,070,000
Progress Billing (or Unearned Revenue) 2,070,000
3. To record cash collections during 20x2:
Cash 1,850,000
Accounts Receivable 1,850,000
These entries reflect the costs incurred, billings made, and cash collected during 20x2. Similar entries will be made in subsequent years based on the progress and financial activities.
Full Question:
Although part of your question is missing, you might be referring to this full question:
During 20x2, Long construction Corporation entered into a fixed price contract to construct a two-lane bridge for $10,000,000. The bridge was completed in 20x4. Information related to the contract is as follows:
20x2 20x3 20x4
Cost incurred during the year $2,523,000 $3,177,000 $1,980,000
Estimated cost to complete - $6,177,000 $1,800,000 $ 0
as of year-end
Billings during the year $2,070,000 $3,630,000 $ 4,300,000
Cash collections during the year $ 1,850,000 $3, 400,000 4,765,000
Long recognizes revenue over time according to percentage of completion.
In the journal below, complete the necessary journal entries for the year 20×2 (credit "Various accounts" for construction costs incurred)