Project #2 Percentage of Completion

During 2019, Martinez Company started a construction job with a contract price of $1,580,000. The job was completed in 2021. The following information is available.

		2019		2020		2021
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 2019, 2020, and 2021.
3. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.