McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2009 and completed in 2010. Cost and other data are presented below:

2009 2010

Costs inccured during the year $1,500,000 $1,300,000

Estimated costs to complete $1,200,000 -0-

Billings during the year $1,200,000 $1,300,000

Cash Collections during the year $1,000,000 $1,500,000

Assume that McCombs uses the percentage-of-completion Method for revenue recognition

1 ) what is the amount of gross profit recognized during 2009 and 2010

2) Prepare all journal entries to record costs, billings, collections, and profit recognition.

Assume that McCombs uses Completed Contract Method

1) wha is the amount of gross profit recognized during 2009 and 2010

Answer rating: 100% (QA)

2009 Contract price Actual cost to date Estimated costs to complete ... View the full answer