During 2020, Skysong 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 $383,800 $850,200 $1,074,000 Estimated costs to complete 626,200 239,800 –0– Billings to date 300,000 899,000 1,620,000 Collections to date 267,000 816,000 1,429,000 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 recognized in 2021 Gross profit recognized in 2022 Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
During 2020, Skysong 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 $383,800 $850,200 $1,074,000 Estimated costs to complete 626,200 239,800 –0– Billings to date 300,000 899,000 1,620,000 Collections to date 267,000 816,000 1,429,000 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 recognized in 2021 Gross profit recognized in 2022 Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 61P
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Question
During 2020, Skysong 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
|
$383,800 | $850,200 | $1,074,000 | |||
|
Estimated costs to complete
|
626,200 | 239,800 | –0– | |||
|
Billings to date
|
300,000 | 899,000 | 1,620,000 | |||
|
Collections to date
|
267,000 | 816,000 | 1,429,000 |
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 recognized in 2021
|
||
|
Gross profit recognized in 2022
|
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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