Question
P Miller Contractors received a contract to construct a healthcare facility for $3,500,000. Construction began in 2024 and was completed in 2025. Costs and other
P Miller Contractors received a contract to construct a healthcare facility for $3,500,000. Construction began in 2024 and was completed in 2025. Costs and other data are presented below:
| 2024 | 2025 | ||
| Cost incurred during the year | 1,500,000 | 1,300,000 | |
| Estimated costs to complete | 1,200,000 | - | |
| Billings during the year | 1,700,000 | 1,800,000 | |
| Cash Collections during the year | 1,000,000 | 2,500,000 |
Assume that P Miller Contractors uses the percentage-of-completion method for revenue recognition.
1. Compute the amount of gross profit recognized during 2024 and 2025.
2. Prepare all journal entries to record costs, billings, collections and profit recognition for 2024 and 2025. Round your answers to the nearest whole dollar.
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Executive Compensation Accounting And Economic Issues
Authors: Gary Girous
1st Edition
1606498789, 1606498797, 9781606498781, 9781606498798
