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During 2020, Pharoah Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available.
During 2020, Pharoah Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available.
2020 | 2021 | 2022 | ||||
---|---|---|---|---|---|---|
Costs incurred to date | $373,700 | $902,000 | $1,070,000 | |||
Estimated costs to complete | 636,300 | 198,000 | 0 | |||
Billings to date | 303,000 | 899,000 | 1,620,000 | |||
Collections to date | 273,000 | 807,000 | 1,412,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
Gross profit recognized in 2020 | $enter a dollar amountenter a dollar amount | |
---|---|---|
Gross profit recognized in 2021 | $enter a dollar amountenter a dollar amount | |
Gross profit recognized in 2022 | $enter a dollar amountenter a dollar amount |
Prepare the journal entries to record profit or loss, if any using the percentage-of completion-method and (B) the completed- contract method |
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