Question
During 2020, Sheridan Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.
During 2020, Sheridan Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $396,000 | $806,600 | $1,080,000 | |||
| Estimated costs to complete | 594,000 | 283,400 | 0 | |||
| Billings to date | 301,000 | 892,000 | 1,590,000 | |||
| Collections to date | 268,000 | 816,000 | 1,427,000 |
Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Gross profit | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
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Frank Woods Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
13th Edition
1292085053, 9781292085050
