Current Attempt in Progress

During 2023, Cullumber Company started a construction job with a contract price of $1,248,000. The job was completed in 2025. The following information is available. The contract is non-cancellable.

Costs incurred to date

Estimated costs to complete

Billings to date (non-refundable)

Collections to date

2023

$312,000

468,000

234,000

210,600

2024

$643,500

214,500

702,000

631,800

2025

$834,600

1,248,000

1,111,500

(a)

Your Answer

Correct Answer (Used)

Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2023

2024

2025

Gross profit / (loss)

$

187.200

105,300

120,900

(b)

Prepare all necessary journal entries for 2024. (Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Account Titles and Explanation

Debit

Credit

(To record cost of construction)

(To record progress billings)

(To record collections)

(To record revenues)

(To record construction expenses)