Solution-Compute the amount of gross profit to be recognized

Compute the amount of gross profit to be recognized

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Reference no: EM132591148

Question - During 20X1 Nathan Company started a construction job with a contract price of $1,580,000. The job was completed in 20X3. The following information is available.

	20X1	20X2	20X3
Costs incurred to date	$430,000	$766,500	$1,067,000
Estimated costs to complete	570,000	328,500	-0-
Billings to date	297,000	900,000	1,580,000
Collections to date	272,000	817,000	1,411,000

Instructions -

(a) Compute the amount of gross profit to be recognized in 20X1 and 20X2 assuming the percentage-of-completion method is used.

(b) Prepare the four necessary journal entries for 20X2.

Reference no: EM132591148

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Compute the amount of gross profit to be recognized

Reference no: EM132591148

Reference no: EM132591148

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