Solution-Calculate the gross profit to be recognized

Calculate the gross profit to be recognized annually

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Question - During 2019, Benton Co. started construction work at a contract price of $ 1,600,000. The work completed in 2021. The following information is available:

	2019	2020	2021
Cost incurred to date	$400,000	$825,000	$1,070,000
Estimated costs to complete	600,000	275,000	0
Billings to date	300,000	900,000	1,600,000
Collection to date	270,000	810,000	1,425,000

Required -

a. Calculate the gross profit to be recognized annually, assuming the completion percentage method is used.

b. All the necessary journals for the year 2020.

c. Calculate the gross profit to be recognized annually, assuming the cost recovery method is used.

Reference no: EM132538837

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Calculate the gross profit to be recognized annually

Reference no: EM132538837

Reference no: EM132538837

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