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Question: during 2017 martinez company started a construction job with a...

Question details

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 2017, 2018, and 2019.

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

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