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. (Credit account titles are automatically indented when 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. For costs incurred use account Materials, Cash, Payables.)

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 2019 2017 2018 $373,700 $749,360 $1,070,000 636,300 352,640 302,000 907,000 1,620,000 268,000 815,000 1,425,000