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During 2020, Cullumber Company started a construction job with a contract price of $1,248,000. The job was completed in 2022. The following information is available.
During 2020, Cullumber Company started a construction job with a contract price of $1,248,000. The job was completed in 2022. The following information is available. The contract is non-cancellable. 2020 2021 2022 Costs incurred to date $312,000 $643,500 $834,600 Estimated costs to complete 468,000 214,500 0 Billings to date (non-refundable) 234,000 702,000 1,248,000 Collections to date 210,600 631,800 1,111,500 Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 2021 2022 Gross profit/(loss) $ $ e Textbook and Media List of Accounts Calculate the amount of gross profit to be recognized each year, assuming the completed-contract method is used. (Do not leave any answer field blank. Enter O for amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 2021 2022 Gross profit/(loss) e Textbook and Media List of Accounts Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record cost of construction) (To record progress billings) (To record collections) (To record revenues) (To record construction expenses)
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