During 2020, Pearl 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 2022Costs incurred to date $393,900 $760,380 $1,059,000Estimated costs to complete 616,100 341,620 –0–Billings to date 299,000 905,000 1,610,000Collections to date 268,000 818,000 1,421,000 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 $enter a dollar amount eTextbook and MediaList of Accounts 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 0 for the amounts. For costs incurred use account Materials, Cash, Payables.)Account Titles and ExplanationDebitCreditenter an account title to record cost of constructionenter a debit amountenter a credit amountenter an account title to record cost of constructionenter a debit amountenter a credit amount(To record cost of construction.) enter an account title to record progress billingsenter a debit amountenter a credit amountenter an account title to record progress billingsenter a debit amountenter a credit amount(To record progress billings.) enter an account title to record collectionsenter a debit amountenter a credit amountenter an account title to record collectionsenter a debit amountenter a credit amount(To record collections.) enter an account title to recognize revenueenter a debit amountenter a credit amountenter an account title to recognize revenueenter a debit amountenter a credit amountenter an account title to recognize revenueenter a debit amountenter a credit amount(To recognize revenue.) eTextbook and MediaList of Accounts Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used. 2020 2021 2022Gross profit $enter a dollar amount $enter a dollar amount $enter a dollar amount During 2020, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. Thefollowing information is available.202020212022Costs incurred to date$393.900$760.380$1059.000Estimated costs to complete616.100341.620-0-Billings to dateCollections to date299,000905.0001,610,000268,000818.0001,421,000Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.Gross profit recognized in 2020234000Gross profit recognized in 2021%24116520Gross profit recognized in 2022242000480%24 Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. For costs incurred useaccount Materials, Cash, Payables.)Account Titles and ExplanationDebitCredit(To record cost of construction.)(To record progress billings.)(To record collections.)(To recognize revenue.)

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Answered: ng 2020, Pearl Company started a…

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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Gross profit recognized in 2020		$enter a dollar amount
Gross profit recognized in 2021		$enter a dollar amount
Gross profit recognized in 2022		$enter a dollar amount

eTextbook and Media

List of Accounts

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 0 for the amounts. For costs incurred use account Materials, Cash, Payables.)

Account Titles and Explanation	Debit	Credit
enter an account title to record cost of construction	enter a debit amount	enter a credit amount
enter an account title to record cost of construction	enter a debit amount	enter a credit amount
(To record cost of construction.)
enter an account title to record progress billings	enter a debit amount	enter a credit amount
enter an account title to record progress billings	enter a debit amount	enter a credit amount
(To record progress billings.)
enter an account title to record collections	enter a debit amount	enter a credit amount
enter an account title to record collections	enter a debit amount	enter a credit amount
(To record collections.)
enter an account title to recognize revenue	enter a debit amount	enter a credit amount
enter an account title to recognize revenue	enter a debit amount	enter a credit amount
enter an account title to recognize revenue	enter a debit amount	enter a credit amount
(To recognize revenue.)

eTextbook and Media

List of Accounts

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

		2020		2021		2022
Gross profit		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

During 2020, Pearl 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
$393.900
$760.380
$1059.000
Estimated costs to complete
616.100
341.620
-0-
Billings to date
Collections to date
299,000
905.000
1,610,000
268,000
818.000
1,421,000
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
Gross profit recognized in 2020
234000
Gross profit recognized in 2021
%24
116520
Gross profit recognized in 2022
24
2000480
%24

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 tities and enter O for the amounts. For costs incurred use
account Materials, Cash, Payables.)
Account Titles and Explanation
Debit
Credit
(To record cost of construction.)
(To record progress billings.)
(To record collections.)
(To recognize revenue.)

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