Question: During 2014, Nielsen company started a construction job with a contract price of 1 million six hundred and $3,000. The job was completed in 2016. The following information is available.
cost incurred to date, 2014 $356,040, 2015 $810,000, and 2016 1 million + $62,000,
estimated cost to complete 2014 $632,960, 2015 $270,000, 2016 $0
Billings to date 2014 $298,900, 2015 $866,000, 2016 1 million six hundred and $3,000.
collections to date2014 $266,500, 2015 $802,600, 2016 1372000 dollars.
(a) compute the amount of gross profit to be recognized in each year assuming the percentage of completion method is used
(b) prepare all necessary journal entries for 2015.
two journal entries to record cost of construction.
two journal entries to record progress Billings.
two journal entries to record collections.
three journal entries to recognize Revenue.
(c) compute the amount of gross profit to be recognized each year, assuming the completed contract method is used.