Question
During 2020, Martinez Company started a construction job with a contract price of $1,600,000. The job was completed in 2022. The following information is available.
During 2020, Martinez Company started a construction job with a contract price of $1,600,000. The job was completed in 2022. The following information is available.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $405,900 | $830,680 | $1,074,000 | |||
| Estimated costs to complete | 584,100 | 262,320 | 0 | |||
| Billings to date | 302,000 | 898,000 | 1,600,000 | |||
| Collections to date | 272,000 | 818,000 | 1,420,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
| Gross profit recognized in 2020 |
| |
|---|---|---|
| Gross profit recognized in 2021 |
| |
| Gross profit recognized in 2022 |
|
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Information Technology Control And Audit
Authors: Sandra Senft, Frederick Gallegos, Aleksandra Davis
4th Edition
1439893209, 978-1439893203
