Jets Ltd. contracted to build a high-rise for $ 6,000,000. Construction began in 2020 and is expected

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Jets Ltd. contracted to build a high-rise for $ 6,000,000. Construction began in 2020 and is expected to be completed in 2022. Data for 2020 and 2021 are:

2020 2021

Costs incurred $ 900,000 $ 1,700,000

Estimated costs to complete 3,600,000 2,400,000

Instructions

Using the percentage-of-completion method and the cost-to-cost basis,

a) How much gross profit should be reported for 2020? Show your calculation.

b) How much gross profit should be reported for 2021? Show your calculation.

c) Prepare the journal entry to record the revenue and gross profit for 2021.

Related Book For answer-question

Introduction to Mathematical Statistics and Its Applications

ISBN: 978-0321693945

5th edition

Authors: Richard J. Larsen, Morris L. Marx

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Posted Date: Mar 23, 2022 09:00 PM

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Jets Ltd. contracted to build a high-rise for $ 6,000,000. Construction began in 2020 and is expected

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Jets Ltd Percentage of completion method Calculation of Gross Profit Particulars 2020 2021 ... View the full answer

Introduction to Mathematical Statistics and Its Applications

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