Business, 26.02.2020 01:29 alodrascon175

During 2020, Sunland Company started a construction job with a contract price of $1,408,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.

2020 2021 2022
Costs incurred to date $352,000 $726,000 $941,600
Estimated costs to complete 528,000 242,000 0
Billings to date (non-refundable) 264,000 792,000 1,408,000
Collections to date 237,600 712,800 1,254,000

a. Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
b. Prepare all necessary journal entries for 2021. (Use Materials, Cash, Payables for costs incurred to date.)

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During 2020, Sunland Company started a construction job with a contract price of $1,408,000. The job...

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