1. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. 2. Prepare all necessary journal entries for 2018.

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

During 2020, Bridgeport Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available. 2020 2021 2022 $1,080,000 -0- Costs incurred to date Estimated costs to complete Billings to date Collections to date $396,000 594,000 301,000 268,000 $806,600 283,400 892,000 816,000 1,590,000 1,427,000