Koolman Construction Company began work on a contract in 2019.

Koolman Construction Company began work on a contract in 2019. The contract price is $3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows:

2019 2020 Costs incurred during the year Estimated costs to complete, December 31 Billings during the year Collections d


Required:
1. Compute the gross profit or loss recognized in 2019 and 2020.
2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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