Long?term contract based onpercentage of completion methodJim’s Construction Co. has a$6,800,000 contract which...Long?term contract...

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Accounting

Long?term contract based onpercentage of completion method
Jim’s Construction Co. has a$6,800,000 contract which began on January 1, 2015 to build a newfootball stadium with an expected completion date of October 31,2017. The following table provides information gathered during theconstruction period. Jim uses the percentage completion methodto
account for this contract.
2015
2016
2017
Construction costs incurred during the year
2,040,000
2,932,500
1,657,500
Estimated costs to complete
3,060,000
1,657,500
0
Billings during the year
1,360,000
1,632,000
3,808,000
Cash collected during year
1,020,000
1,360,000
4,080,000
Prepare journal entry to record gross profit for2015
Prepare all necessary journal entries for2016.
I would like to know the steps to soving these 2questions*****

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In: AccountingLong?term contract based onpercentage of completion methodJim’s Construction Co. has a$6,800,000 contract which...Long?term contract based onpercentage of completion methodJim’s Construction Co. has a$6,800,000 contract which began on January 1, 2015 to build a newfootball stadium with an expected completion date of October 31,2017. The following table provides information gathered during theconstruction period. Jim uses the percentage completion methodtoaccount for this contract. 201520162017Construction costs incurred during the year2,040,0002,932,5001,657,500Estimated costs to complete3,060,0001,657,5000Billings during the year1,360,0001,632,0003,808,000Cash collected during year1,020,0001,360,0004,080,000Prepare journal entry to record gross profit for2015Prepare all necessary journal entries for2016.********I would like to know the steps to soving these 2questions*************

	2015	2016	2017
Construction costs incurred during the year	2,040,000	2,932,500	1,657,500
Estimated costs to complete	3,060,000	1,657,500	0
Billings during the year	1,360,000	1,632,000	3,808,000
Cash collected during year	1,020,000	1,360,000	4,080,000