During 2020, Crane Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2020 2021 $366,300 $831,440 623,700 297,000 894,000 270,000 816,000 Your Answer Correct Answer (Used) * Your answer is incorrect. Gross profit recognized in 2020 $ Gross profit recognized in 2021 262,560 Gross profit recognized in 2022 $ 2022 $1,067,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. 1,590,000 1,417,000 716,000 -0- 545,500 452,900
During 2020, Crane Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2020 2021 $366,300 $831,440 623,700 297,000 894,000 270,000 816,000 Your Answer Correct Answer (Used) * Your answer is incorrect. Gross profit recognized in 2020 $ Gross profit recognized in 2021 262,560 Gross profit recognized in 2022 $ 2022 $1,067,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. 1,590,000 1,417,000 716,000 -0- 545,500 452,900
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 26E
Related questions
Question
Do not give answer in image
Transcribed Image Text:During 2020, Crane Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The
following information is available.
Costs incurred to date
Estimated costs to complete
Billings to date
Collections to date
2020
X Your answer is incorrect.
$366,300 $831,440
623,700
270,000
Your Answer Correct Answer (Used)
297,000 894,000
816,000
2021
Gross profit recognized in 2020 $
Gross profit recognized in 2021 $
262,560
Gross profit recognized in 2022 $
$1,067,000
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
2022
1,590,000
1,417,000
716,000
-0-
545,500
452,900
Transcribed Image Text:Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not inden
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For costs incurred use account
Materials, Cash, Payables.)
Account Titles and Explanation
(To record cost of construction.)
(To record progress billings.)
(To record collections.)
(To record collections.)
(To recognize revenue.)
Lah
Debit
Credit
II
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT