Question: During 2020, Nilsen Company started a construction job with a contract price of $1.6 million. The job was completed in 2022. The following information is

During 2020, Nilsen Company started a construction job with a contract price of $1.6 million. The job was completed in 2022. The following information is available. The contract is non-cancellable.

During 2020, Nilsen Company started a construction job with a contract price

Instructions

a. Calculate the amount of gross profit to be recognized each year, assuming the percentage-ofcompletion method is used.

b. Prepare all necessary journal entries for 2021.

c. Calculate the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

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