Long‐term contract based on percentage of completion method Jim’s Construction Co. has a $6,800,000 contract which...

Long‐term contract based on percentage of completion method

Jim’s Construction Co. has a $6,800,000 contract which began on January 1, 2015 to build a new football stadium with an expected completion date of October 31, 2017. The following table provides information gathered during the construction period. Jim uses the percentage completion method to

account for this contract.

	2015	2016	2017
Construction costs incurred during the year	2,040,000	2,932,500	1,657,500
Estimated costs to complete	3,060,000	1,657,500	0
Billings during the year	1,360,000	1,632,000	3,808,000
Cash collected during year	1,020,000	1,360,000	4,080,000

Prepare journal entry to record gross profit for 2015

Prepare all necessary journal entries for 2016.

********I would like to know the steps to soving these 2 questions*************

Expert Solution

ekkarill92 answered 1 year ago

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