Reference no: EM133158594

Question - Gordon, Inc. was hired by SMI, Inc. to build a racetrack at a cost of 525,000,000. The corporation uses the percentage of completion revenue recognition method. The following transactions occurred for Gordon, Inc. in 2021

1/1/21 A bill is sent to SMI, Inc. for $70,000,000

6/30/21 Construction material is purchased with cash for $45,000,000

9/30/21 A bill is sent to SMI, Inc. for $60,000,000

11/23/21 More construction material is purchased with cash for $40,000,000

12/31/21 Budget department determines it will cost $400,000,000 to complete the racetrack

Required - Record all the applicable general journal entries for 2021.