1. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
2. Prepare all necessary journal entries for 2018.

3.Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

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During 2020, Bridgeport 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 $396,000 594,000 301,000 268,000 2021 $806,600 283,400 892,000 816,000 2022 $1,080,000 -0- 1,590,000 1,427,000 During 2020, Bridgeport 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 $396,000 594,000 301,000 268,000 2021 $806,600 283,400 892,000 816,000 2022 $1,080,000 -0- 1,590,000 1,427,000

Answer rating: 100% (QA)

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