During 2017, Blossom Company started a construction job with a contract price of $1,590,000. The job was completed in 2019. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 $396,000 594,000 301,000 268,000 2018 $806,600 283,400 892,000 816,000 2019 $1,080,000 -0- 1,590,000 1,427,000 Prepare all necessary journal entries for 2018. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
During 2017, Blossom Company started a construction job with a contract price of $1,590,000. The job was completed in 2019. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 $396,000 594,000 301,000 268,000 2018 $806,600 283,400 892,000 816,000 2019 $1,080,000 -0- 1,590,000 1,427,000 Prepare all necessary journal entries for 2018. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During 2017, Blossom Company started a construction job with a contract price of $1,590,000. The job was completed in 2019. The
following information is available.
Costs incurred to
date
Estimated costs to
complete
Billings to date
Collections to
date
2017
$396,000
594,000
301,000
268,000
2018
$806,600
283,400
892,000
816,000
2019
$1,080,000
-0-
1,590,000
1,427,000
Prepare all necessary journal entries for 2018.
Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
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