Current Attempt in Progress During 2020, Sheridan 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 $396,000 $806,600 $1,080,000 Estimated costs to complete 594,000 283,400 –0– Billings to date 301,000 892,000 1,590,000 Collections to date 268,000 816,000 1,427,000 Prepare all necessary journal entries for 2021 Using the percentage of completion method. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
Current Attempt in Progress During 2020, Sheridan 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 $396,000 $806,600 $1,080,000 Estimated costs to complete 594,000 283,400 –0– Billings to date 301,000 892,000 1,590,000 Collections to date 268,000 816,000 1,427,000 Prepare all necessary journal entries for 2021 Using the percentage of completion method. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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Question
Current Attempt in Progress
During 2020, Sheridan 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
|
$396,000 | $806,600 | $1,080,000 | |||
|
Estimated costs to complete
|
594,000 | 283,400 | –0– | |||
|
Billings to date
|
301,000 | 892,000 | 1,590,000 | |||
|
Collections to date
|
268,000 | 816,000 |
1,427,000 |
Prepare all necessary
Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
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