The Nick Construction Company uses the percentage completion method to record long-term contracts. He began building a
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| The Nick Construction Company uses the percentage completion method to record long-term contracts. He began building a warehouse for $3,050,000 with the following details | |||
| 2019 | 2020 | 2021 | |
| Costs incurred to date | 300,000 | 900,000 | 1,600,000 |
| Estimated Costs to complete | 1,200,000 | 700,000 | 0 |
| Billings to date | 250,000 | 800,000 | 2,000,000 |
| Collections to date | 175,000 | 700,000 | 2,000,000 |
Determine the amount of gross profit/loss that Nick Construction Company will recognize in the years 2019 through 2021, using the percentage-of-completion method. The contract was completed in the year 2021.
Prepare ALL journal entries related to this construction project for the years 2019 and 2020 only under the percentage of completion method.
Expert Answer:
Related Book For 
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
Posted Date:
