In 2017, Bridgeport Company started a construction job with a contract price of $1,620,000. The job was completed in 2019. The following information is available.

 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

 Prepare all necessary journal entries for 2018.

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

 

Transcribed Image Text:

Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 2018 $373,700 $749,360 636,300 352,640 302,000 907,000 268,000 815,000 2019 $1,070,000 -0- 1,620,000 1,425,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 2018 $373,700 $749,360 636,300 352,640 302,000 907,000 268,000 815,000 2019 $1,070,000 -0- 1,620,000 1,425,000

Answer rating: 100% (QA)

Part 1 The amount of gross profit to be recognized each year is calculated as below Gross Profit Rec... View the full answer