During 2020, Grouper Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $410,000 $754,800 $1,067,000 Estimated costs to complete 590,000 355,200 –0– Billings to date 297,000 899,000 1,610,000 Collections to date 272,000 818,000 1,437,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar amount Gross profit recognized in 2021 $enter a dollar amount Gross profit recognized in 2022
During 2020, Grouper Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $410,000 $754,800 $1,067,000 Estimated costs to complete 590,000 355,200 –0– Billings to date 297,000 899,000 1,610,000 Collections to date 272,000 818,000 1,437,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar amount Gross profit recognized in 2021 $enter a dollar amount Gross profit recognized in 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During 2020, Grouper Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.
|
2020
|
2021
|
2022
|
||||
|---|---|---|---|---|---|---|
|
Costs incurred to date
|
$410,000 | $754,800 | $1,067,000 | |||
|
Estimated costs to complete
|
590,000 | 355,200 | –0– | |||
|
Billings to date
|
297,000 | 899,000 | 1,610,000 | |||
|
Collections to date
|
272,000 | 818,000 | 1,437,000 |
(a)
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
|
Gross profit recognized in 2020
|
$enter a dollar amount
|
|
|---|---|---|
|
Gross profit recognized in 2021
|
$enter a dollar amount
|
|
|
Gross profit recognized in 2022
|
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