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 ofDetails201920202021Costs incurred to dateEstimated costs to completeBillings to dateCollections to date$400.000 $825.000 $1,070,000600,000275,0001,600,0001.425.000300,000900,000270,000810,000Instructionsa. Compute the amount of gross profit to be recognized for 2019 and 2020, assuming thepercentage-of-completion method is used.b. Prepare all necessary journal entries for 2020.

Journal entries are prepared to record the financial and non-financial transactions of the business…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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