Sandhill Construction Company uses the percentage-of-completion method of accounting. In 2020, Sandhill began work under a non-cancellable contract #E2-D2, which provided for a contract price of $2,159,000. Other details follow:

		2020		2021
Costs incurred during the year		$571,320		$1,446,000
Estimated costs to complete, as at December 31		1,015,680		0
Billings during the year (non-refundable)		415,000		1,545,600
Collections during the year		349,000		1,505,000

(A) 

How much revenue should be recognized in 2020 and in 2021?

		2020		2021
Revenue to be recognized		$enter a dollar amount		$enter a dollar amount

(B) 

Assuming the same facts as those above except that Sandhill uses the completed-contract method of accounting, how much revenue should be recognized in 2021?

		2021
Revenue to be recognized		$enter a dollar amount

(C) 

Prepare a complete set of journal entries for 2020. (using the percentage-of-completion method. Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to record cost of construction	enter a debit amount	enter a credit amount
(To record cost of construction)
enter an account title to record progress billings	enter a debit amount	enter a credit amount
(To record progress billings)
enter an account title to record collections	enter a debit amount	enter a credit amount
(To record collections)
enter an account title to record revenues	enter a debit amount	enter a credit amount
(To record revenues)
enter an account title to record construction expenses	enter a debit amount	enter a credit amount
(To record construction expenses)

Answer rating: 100% (QA)

a 2020 2021 a Contract price 2159000 2159000 b Cost incurred to date ... View the full answer