Project #2 Percentage of Completion

During 2017, Martinez Company started a construction job with a contract price of $1,580,000. The job was completed in 2019. The following information is available.

2017

2018

2019

Costs incurred to date

$404,000

$853,160

$1,073,000

Estimated costs to complete

606,000

254,840

0

Billings to date

301,000

904,000

1,580,000

Collections to date

271,000

812,000

1,418,000

Instructions:

1. Complete a chart analyzing the above information showing revenue, the % of completion every year and the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
2. Prepare all necessary journal entries for 2017, 2018, and 2019.
3. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
4. Your work can be completed on 1Excel sheet.