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Q9. During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2021. The following information is available. 2020 2021 Details 2019 $400,000 $825,000 S1,070,000 Costs incurred to date Estimated costs to complete 600,000 275,000 Billings to date | Collections to date 300,000 900,000 1,600,000 270,000 810,000 1,425,000 Instructions a. Compute the amount of gross profit to be recognized for 2019 and 2020, assuming the percentage-of-completion method is used. b. Prepare all necessary journal entries for 2020.

Q9. During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2021. The following information is available. 2020 2021 Details 2019 $400,000 $825,000 S1,070,000 Costs incurred to date Estimated costs to complete 600,000 275,000 Billings to date | Collections to date 300,000 900,000 1,600,000 270,000 810,000 1,425,000 Instructions a. Compute the amount of gross profit to be recognized for 2019 and 2020, assuming the percentage-of-completion method is used. b. Prepare all necessary journal entries for 2020.

FINANCIAL ACCOUNTING
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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Q9. $1,600,000. The job was completed in 2021. The following information is available. During 2019, Nilsen Company started a construction job with a contract price of Details 2019 2020 2021 Costs incurred to date Estimated costs to complete Billings to date Collections to date $400.000 $825.000 $1,070,000 600,000 275,000 1,600,000 1.425.000 300,000 900,000 270,000 810,000 Instructions a. Compute the amount of gross profit to be recognized for 2019 and 2020, assuming the percentage-of-completion method is used. b. Prepare all necessary journal entries for 2020.
Transcribed Image Text:Q9. $1,600,000. The job was completed in 2021. The following information is available. During 2019, Nilsen Company started a construction job with a contract price of Details 2019 2020 2021 Costs incurred to date Estimated costs to complete Billings to date Collections to date $400.000 $825.000 $1,070,000 600,000 275,000 1,600,000 1.425.000 300,000 900,000 270,000 810,000 Instructions a. Compute the amount of gross profit to be recognized for 2019 and 2020, assuming the percentage-of-completion method is used. b. Prepare all necessary journal entries for 2020.
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