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During 2020. Stellar Company started a construction job with a contract price of $1,610,000. The job was completed in 2022 The following information is available
During 2020. Stellar Company started a construction job with a contract price of $1,610,000. The job was completed in 2022 The following information is available Costs incurred to date Estimated costs to complete Billings to date Collections to date 2020 $366,300 623,700 300,000 271 000 2021 $772,100 330.900 909.000 B07.000 2022 51.063.000 -0- 1,610,000 1.424,000 Compute the amount of gross proht to be recognized each year, assuming the percentage of completion method is used, Gross profit recognized in 2020 $ 229,400 Gross proht recognized in 2021 $ 125 500 $ Gross profit recognized in 2022 192.100 (b) Prepare all necessary journal entries for 2021. (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 for the amounts. For costs incurred use account Materials. Cash, Payables.) Account Titles and Explanation Debit Credit Construction in Process Materials. Cash Payables (To record cost of construction) Accounts Receivable Billings on Construction in Process (To record progress billings.) Cash
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