During 2020, Teal Company started a construction job with a contract price of $1,610,000. The...
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Accounting
During 2020, Teal Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $393,900 $760,380 $1,059,000 Estimated costs to complete 616,100 341,620 0 Billings to date 299,000 905,000 1,610,000 Collections to date 268,000 818,000 1,421,000
(a) Correct answer icon 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 amount 234000 Gross profit recognized in 2021 $enter a dollar amount 116520 Gross profit recognized in 2022
(b) Prepare all necessary journal entries for 2021.
(c)Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.
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