18.3 #1

Show all work and explain!

Marin Construction Company uses the percentage-of-completion method of accounting. In 2020, Marin began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2020 2021 $658,560 $1,408,000 909,440 -0- 421,000 2,187,000 348,000 1,527,000 Your answer is incorrect. What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ Prepare a complete set of journal entries for 2020 (using the percentage-of-completion method). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For costs incurred use account Materials, Cash, Payables.) Debit Credit Account Titles and Explanation Construction in Process Materials, Cash, Payables (To record cost of of construction.) Accounts Receivable Billings on Construction in Process (To record progress billings.) Cash Accounts Receivable (To record collections.) Construction Expenses Construction in Process Revenue from Long-Term Contracts (To recognize revenue.)