During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was
Question:
During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2014. The following information is available.
Instructions(a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of completion method is used.(b) Prepare all necessary journal entries for 2013.(c) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method isused.
2012 2014 2013 $825,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date $400,000 $1,070,000 --0- 1,600,000 1,425,000 600,000 300,000 270,000 900,000 810,000
Step by Step Answer:
a Gross profit recognized in 2012 2013 2014 Contract price 1600000 1600000 1600000 Costs Costs to da...View the full answer
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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