Question
In: Accounting
During 2017, Martinez Company started a construction job with a contract price of $1,580,000. The job...
During 2017, Martinez Company started a construction job with a contract price of $1,580,000. The job was completed in 2019. The following information is available.
|
2017 |
2018 |
2019 |
||||
|
Costs incurred to date |
$404,000 |
$853,160 |
$1,073,000 |
|||
|
Estimated costs to complete |
606,000 |
254,840 |
–0– |
|||
|
Billings to date |
301,000 |
904,000 |
1,580,000 |
|||
|
Collections to date |
271,000 |
812,000 |
1,418,000 |
Instructions:
Complete a chart analyzing the above information showing revenue, the % of completion every year and the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
Prepare all necessary journal entries for 2017, 2018, and 2019.
Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
During 2020, Martinez Company started a construction job with a contract price of $1,610,000. The job...
During 2020, Martinez 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
$405,900
$766,500
$1,076,000
Estimated costs to complete
584,100
328,500
–0–
Billings to date
300,000
893,000
1,610,000
Collections to date
267,000
809,000
1,435,000
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...
During 2020, Martinez Company started a construction job with a contract price of $1,610,000. The job...
During 2020, Martinez 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
$405,900
$766,500
$1,076,000
Estimated costs to complete
584,100
328,500
–0–
Billings to date
300,000
893,000
1,610,000
Collections to date
267,000
809,000
1,435,000
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...
During 2017, Larkspur Company started a construction job with a contract price of $1,610,000. The job...
During 2017, Larkspur Company started a construction job with a
contract price of $1,610,000. The job was completed in 2019. The
following information is available. 2017 2018 2019 Costs incurred
to date $405,900 $766,500 $1,076,000 Estimated costs to complete
584,100 328,500 –0– Billings to date 300,000 893,000 1,610,000
Collections to date 267,000 809,000 1,435,000 Compute the amount of
gross profit to be recognized each year, assuming the
percentage-of-completion method is used. Gross profit recognized in
2017 $ Gross profit recognized...
During 2017, Culver Company started a construction job with a contract price of $1,610,000. The job...
During 2017, Culver Company started a construction job with a
contract price of $1,610,000. The job was completed in 2019. The
following information is available.
2017
2018
2019
Costs incurred to date
$393,900 $760,380
$1,059,000
Estimated costs to complete
616,100 341,620
–0–
Billings to date 299,000
905,000
1,610,000
Collections to date
268,000 818,000
1,421,000
Compute the amount of gross profit to be recognized each year,
assuming the...
During 2017, Ivanhoe Company started a construction job with a contract price of $1,590,000. The job...
During 2017, Ivanhoe Company started a construction job with a
contract price of $1,590,000. The job was completed in 2019. The
following information is available.
2017
2018
2019
Costs incurred to date
$366,300
$831,440
$1,067,000
Estimated costs to complete
623,700
262,560
–0–
Billings to date
297,000
894,000
1,590,000
Collections to date
270,000
816,000
1,417,000
a) Compute the amount of gross profit to be recognized each
year, assuming the percentage-of-completion method is used.
Gross profit in 2017
Gross profit in 2018...
During 2020, Riverbed Company started a construction job with a contract price of $1,610,000. The job...
During 2020, Riverbed Company started a construction job with a
contract price of $1,610,000. The job was completed in 2022. T
he following information is available. 2020 2021 2022
Costs incurred to date $383,800 $905,280 $1,063,000
Estimated costs to complete 626,200 198,720 –0–
Billings to date 302,000 896,000 1,610,000
Collections to date 271,000 817,000 1,419,000
Compute the amount of gross profit to be recognized each year,
assuming the percentage-of-completion method is used.
Gross profit recognized in 2020
$
Gross profit...
During 2020, Shamrock Company started a construction job with a contract price of $1,600,000. The job...
During 2020, Shamrock Company started a construction job with a
contract price of $1,600,000. The job was completed in 2022. The
following information is available.
2020
2021
2022
Costs incurred to date
$405,900
$830,680
$1,074,000
Estimated costs to complete
584,100
262,320
–0–
Billings to date
302,000
898,000
1,600,000
Collections to date
272,000
818,000
1,420,000
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...
During 2020, Blossom Company started a construction job with a contract price of $1,590,000. The job...
During 2020, Blossom Company started a construction job with a
contract price of $1,590,000. The job was completed in 2022. The
following information is available.
2020
2021
2022
Costs incurred to date
$410,000
$901,180
$1,067,000
Estimated costs to complete
590,000
197,820
–0–
Billings to date
297,000
903,000
1,590,000
Collections to date
271,000
805,000
1,434,000
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...
During 2015, Nilsen Company started a construction job with a contract price of $3,200,000. The job...
During 2015, Nilsen Company started a construction job with a
contract price of $3,200,000. The job was completed in 2017. The
following information is available:
2015 2016 2017
Costs incurred to date $ 800,000 $1,650,000 $2,140,000
Estimated costs to complete 1,200,000 550,000 -0-
Billings to date 600,000 1,800,000 3,200,000
Collections to date 540,000 1,620,000 2,850,000
Required:
a. Prepare all the necessary accounting entries for 2015, 2016
&2017, assuming the percentage-of-completion method is
used.
b. Prepare all the necessary accounting entries...
During 2020, Sage Company started a construction job with a contract price of $1,620,000. The job...
During 2020, Sage Company started a construction job with a
contract price of $1,620,000. The job was completed in 2022. The
following information is available. 2020 2021 2022 Costs incurred
to date $444,400 $867,420 $1,060,000 Estimated costs to complete
565,600 230,580 –0– Billings to date 301,000 904,000 1,620,000
Collections to date 272,000 814,000 1,411,000 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...
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