During 2020, Sandhill Company started a construction job with a contract price of $1,472,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.

		2020		2021		2022
Costs incurred to date		$368,000		$759,000		$984,400
Estimated costs to complete		552,000		253,000		0
Billings to date (non-refundable)		276,000		828,000		1,472,000
Collections to date		248,400		745,200		1,311,000

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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)

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List of Accounts

Partially correct answer icon

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 titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to record cost of construction	enter a debit amount	enter a credit amount
enter an account title to record cost of construction	enter a debit amount	enter a credit amount
(To record cost of construction)
enter an account title to record progress billings	enter a debit amount	enter a credit amount
enter an account title to record progress billings	enter a debit amount	enter a credit amount
(To record progress billings)
enter an account title to record collections	enter a debit amount	enter a credit amount
enter an account title to record collections	enter a debit amount	enter a credit amount
(To record collections)
enter an account title to record revenues	enter a debit amount	enter a credit amount
enter an account title to record revenues	enter a debit amount	enter a credit amount
(To record revenues)
enter an account title to record construction expenses	enter a debit amount	enter a credit amount
enter an account title to record construction expenses	enter a debit amount	enter a credit amount
(To record construction expenses)

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Assistance Used

List of Accounts

Assistance Used

Partially correct answer icon

Your answer is partially correct.

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 0 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)		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount