Discuss the percentage-of-completion method

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Reference no: EM131888408

Question: During 2017, Martinez Company started a construction job with a contract price of $1,580,000. The job was completed in 2019. The following information is available.

	2017	2018	2019
Costs incurred to date	$404,000	$853,160	$1,073,000
Estimated costs to complete	606,000	254,840	-0-
Billings to date	301,000	904,000	1,580,000
Collections to date	271,000	812,000	1,418,000

Instructions: Complete a chart analyzing the above information showing revenue, the % of completion every year and the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Prepare all necessary journal entries for 2018.

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

Reference no: EM131888408

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