Question
On February 1, 2020, a company agreed to construct a building at a contract price of $37,000. The company estimated the project would be finished
On February 1, 2020, a company agreed to construct a building at a contract price of $37,000. The company estimated the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:
2020 2021 2022
Total costs incurred to date $8,000 $10,000 $22,000
Estimated costs to complete 12,000 6,000 -0-
Customer billings to date 8,000 18,000 28,000
Collections to date 4,000 15,000 25,000
If the company uses the percentage-of-completion method, in the journal entry to record construction revenue, construction expense, and gross profit for 2020, how much will be recorded for Construction in Process?
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