Solution-Calculate the amount of gross profit to be

Calculate the amount of gross profit to be recognized

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Question - During 2020, Sheridan Company started a construction job with a contract price of $1,376,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.

	2020	2021	2022
Costs incurred to date	$344,000	$709,500	$920,200
Estimated costs to complete	516,000	236,500	0
Billings to date (non-refundable)	258,000	774,000	1,376,000
Collections to date	232,200	696,600	1,225,500

Required -

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.)

C. Calculate the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

Reference no: EM133093168

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Calculate the amount of gross profit to be recognized

Reference no: EM133093168

Reference no: EM133093168

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