Exercise 18-33

During 2017, Bridgeport Company started a construction job with a contract price of $1,620,000. The job was completed in 2019. The following information is available.

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

Prepare all necessary journal entries for 2018.

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

Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 2019 2018 $373,700 $749,360 $1,070,000 352,640 636,300 302,000 7,000 1,620,000 268,000 815,000 1,425,000