Based on Exercise 18-33 During 2020, Blue Company started a construction job with a contract price of $1,580,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $383,800 $807,380 $1,070,000 Estimated costs to complete 626,200 298,620 -0- Billings to date 297,000 895,000 1,580,000 Collections to date 271,000 807,000 1,433,000 Instructions: 1. Complete a chart in Excel 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 2020, 2021, and 2022. 3. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used

Based on Exercise 18-33 During 2020, Blue Company started a construction job with a contract price of $1,580,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $383,800 $807,380 $1,070,000 Estimated costs to complete 626,200 298,620 -0- Billings to date 297,000 895,000 1,580,000 Collections to date 271,000 807,000 1,433,000 Instructions: 1. Complete a chart in Excel 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 2020, 2021, and 2022. 3. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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