During 2020, Pearl 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 $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 completed-contract method is used. 2020 2021 2022 Gross profit $enter a dollar amount $enter a dollar amount $enter a dollar amount
During 2020, Pearl 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 $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 completed-contract method is used. 2020 2021 2022 Gross profit $enter a dollar amount $enter a dollar amount $enter a dollar amount
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
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Question
During 2020, Pearl 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
|
$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 completed-contract method is used.
|
2020
|
2021
|
2022
|
||||
|---|---|---|---|---|---|---|
|
Gross profit
|
$enter a dollar amount
|
$enter a dollar amount
|
$enter a dollar amount
|
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