During 2017, Sandhill Company started a construction job with a contract price of $1,856,000. The job...

 

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During 2017, Sandhill Company started a construction job with a contract price of $1,856,000. The job was completed in 2019. The following information is available. The contract is non-cancellable. 2017 2018 2019 Costs incurred to date $464,000 $957,000 $1,241,200 Estimated costs to complete 696,000 319,000 Billings to date (non-refundable) 348,000 1,044,000 1,856,000 Collections to date 313,200 939,600 1,653,000 *(a) V Your answer is correct. Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. 2017 2018 2019 Gross profit recognized $278400 s156600 179800 Prepare all necessary journal entries for 2018. (Use Accounts Payable for costs incurred to date.) the amount is entered. Do not indent manually. If no entry is required, select "No Entry Account Titles and Explanation Debit Credit Accounts Payable (To record cost incurred.) Accounts Receivable Construction Expenses (To record billings to date.) Cash Accounts Receivable (To record collection.) Construction Expenses Revenue from Long-Term Contracts (To record revenue from long-term contract.) Construction Expenses Cash (To record construction expenses.) Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Cash Commission Expense Commission Revenue Construction Expenses Contract Asset/Liability Cost of Goods Sold Delivery Expense Estimated Inventory Returns Interest Expense Interest Income Interest Payable Interest Receivable Inventory Inventory on Consignment Loss due to Damaged Inventory Miscellaneous Expense No Entry Notes Receivable Refund Liability Rent Revenue Returned Inventory Revenue from Consignment Sales Revenue from Long-Term Contracts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Service Revenue-Commissions Unearned Revenue Unearned Warranty Revenue Utilities Expense Warranty Expense Warranty Liability Warranty Revenue During 2017, Sandhill Company started a construction job with a contract price of $1,856,000. The job was completed in 2019. The following information is available. The contract is non-cancellable. 2017 2018 2019 Costs incurred to date $464,000 $957,000 $1,241,200 Estimated costs to complete 696,000 319,000 Billings to date (non-refundable) 348,000 1,044,000 1,856,000 Collections to date 313,200 939,600 1,653,000 *(a) V Your answer is correct. Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. 2017 2018 2019 Gross profit recognized $278400 s156600 179800 Prepare all necessary journal entries for 2018. (Use Accounts Payable for costs incurred to date.) the amount is entered. Do not indent manually. If no entry is required, select "No Entry Account Titles and Explanation Debit Credit Accounts Payable (To record cost incurred.) Accounts Receivable Construction Expenses (To record billings to date.) Cash Accounts Receivable (To record collection.) Construction Expenses Revenue from Long-Term Contracts (To record revenue from long-term contract.) Construction Expenses Cash (To record construction expenses.) Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Cash Commission Expense Commission Revenue Construction Expenses Contract Asset/Liability Cost of Goods Sold Delivery Expense Estimated Inventory Returns Interest Expense Interest Income Interest Payable Interest Receivable Inventory Inventory on Consignment Loss due to Damaged Inventory Miscellaneous Expense No Entry Notes Receivable Refund Liability Rent Revenue Returned Inventory Revenue from Consignment Sales Revenue from Long-Term Contracts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Service Revenue-Commissions Unearned Revenue Unearned Warranty Revenue Utilities Expense Warranty Expense Warranty Liability Warranty Revenue

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Computation of of completion revenue recognition and Gross Profit Sandhill Company Year Actual cost ... View the full answer