During 2020, Blue Company started a construction job with a contract price of $1,610,000. The...
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During 2020, Blue Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. Costs incurred to date Estimated costs to complete 2020 2021 2022 $434,300 $859,560 $1,073,000 575,700 242,440 -0- 301,000 897,000 1,610,000 271,000 817,000 1,428,000 Billings to date Collections to date Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 A $ Gross profit recognized in 2021 A Gross profit recognized in 2022 A e Textbook and Media List of Accounts Prepare all necessary journal entries for 2021. (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 for the amounts. For costs incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit (To record cost of construction.) (To record progress billings.) (To record collections.) (To recognize revenue.) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used. 2020 2021 2022 Gross profit $ e Textbook and Media List of Accounts
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