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During 2015 Cambridge Co. started a construction job with a contract price of $2,000,000. The job was completed in 2017. The following information is available:
| During 2015 Cambridge Co. started a construction job with a contract price of $2,000,000. | |||||
| The job was completed in 2017. The following information is available: | |||||
| 2015 | 2016 | 2017 | |||
| Costs incurred to date | 500,000 | 900,000 | 1,100,000 | ||
| Estimated costs to complete | 600,000 | 200,000 | 0 | ||
| Billings to date | 500,000 | 1,400,000 | 2,000,000 | ||
| Collections to date | 450,000 | 1,300,000 | 1,800,000 | ||
| Instructions: | |||||
| (a) Compute the amount of gross profit to be recognized each year assuming the percentage of | |||||
| completion method is used. | |||||
| (b) ****EXTRA CREDIT - Prepare all necessary journal entries for 2016. | |||||
| 2015 | 2016 | 2017 | |||
| 2,000,000 | 2,000,000 | 2,000,000 | |||
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
21st Edition
978-1259916984
