During 2020, Pharoah Company started a construction job with a contract price of $1,344,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.

		2020		2021		2022
Costs incurred to date		$336,000		$693,000		$898,800
Estimated costs to complete		504,000		231,000		0
Billings to date (non-refundable)		252,000		756,000		1,344,000
Collections to date		226,800		680,400		1,197,000

Incorrect answer icon Your answer is incorrect.

A. Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

B. Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.

C. Calculate the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

+ BUAD 263 Chapter 6 Assignment Question 4 of 5 0.1 / 1 III titles and enter for the amounts.) Account Titles and Explanation Debit Credit Materials, Cash, Payables (To record cost of construction) Accounts Receivable (To record progress billings) Cash Accounts Receivable (To record collections) (To record revenues) (To record construction expenses) + BUAD 263 Chapter 6 Assignment Question 4 of 5 > 0.1/1 X Your answer is incorrect. 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 Solution List of Accounts Save for Later Attempts: 1 of 3 used Submit Answer & BUAD 263 Chapter 6 Assignment Question 4 of 5 0.1 / 1 = X Your answer is incorrect. 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 Solution List of Accounts Your answer is partially correct. 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