During 2020, Nash Company started a construction job with a contract price of $1,580,000. The...
60.1K
Verified Solution
Link Copied!
Question
Accounting
During 2020, Nash Company started a construction job with a contract price of $1,580,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $366,300 $802,270 $1,080,000 Estimated costs to complete 623,700 296,730 -0- Billings to date 297,000 906,000 1,580,000 Collections to date 270,000 802,000 1,427,000 (a) Your answer is correct. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $ 218300 Gross profit recognized in 2021 $ 132830 Gross profit recognized in 2022 $ 148870 e Textbook and Media List of Accounts Attempts: 1 of 3 used (b) 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.) e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
