During 2020, Pharoah Company started a construction job with a contract price of $1,620,000. The...
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Accounting
During 2020, Pharoah Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $373,700 | $902,000 | $1,070,000 | |||
| Estimated costs to complete | 636,300 | 198,000 | 0 | |||
| Billings to date | 303,000 | 899,000 | 1,620,000 | |||
| Collections to date | 273,000 | 807,000 | 1,412,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
| Gross profit recognized in 2020 | $enter a dollar amountenter a dollar amount
| |
|---|---|---|
| Gross profit recognized in 2021 | $enter a dollar amountenter a dollar amount
| |
| Gross profit recognized in 2022 | $enter a dollar amountenter a dollar amount
|
| Prepare the journal entries to record profit or loss, if any using the percentage-of completion-method and (B) the completed- contract method |
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