Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give image format
Transcribed Image Text:During 2020, Pharoah Company started a construction job with a contract price of $1,728,000. The job was completed in 2022. The
following information is available. The contract is non-cancellable.
Costs incurred to date
Estimated costs to complete
Billings to date (non-refundable)
Collections to date
Gross profit/(loss)
2020
2020
$432,000 $891,000 $1,155,600
297,000
972,000
874,800
$
648,000
324,000
291,600
2021
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter
negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
2021
$
tA
2022
1,728,000
1,539,000
2022
$
19
![Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles
are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter O for the amounts.)
Account Titles and Explanation
(To record cost of construction)
(To record progress billings)
(To record collections)
(To record revenues)
(To record construction expenses)
Debit
|||
Credit
]]]]]]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd15ba5ab-7855-4b13-b619-457149c47fb3%2Fd18d71b6-d3ce-47ef-bf09-0624c8cf9afb%2Fpqrtqyp_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles
are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter O for the amounts.)
Account Titles and Explanation
(To record cost of construction)
(To record progress billings)
(To record collections)
(To record revenues)
(To record construction expenses)
Debit
|||
Credit
]]]]]]
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