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In 2014, Gurney Construction Company agreed to construct an apartment building at a price of $1,722,000. The information relating to...

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In 2014, Gurney Construction Company agreed to construct an apartment building at a price of $1,722,000. The information relating to the costs and billings for this contract is shown below.;2014 2015 2016;Costs incurred to date $405,285 $751,260 $1,100,000;Estimated costs yet to be incurred 583,215 237,240 ?0?;Customer billings to date 303,400 856,300 1,722,000;Collection of billings to date 260,100 708,600 1,451,000;(a) Assuming that the percentage-of-completion method is used.;(1) compute the amount of gross profit to be recognized in 2014 and 2015.;Gross profit to be recognized in 2014 $ 706020;Gross profit to be recognized in 2015 $ 602700;(2) prepare journal entries for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables.)

 

Paper#76028 | Written in 18-Jul-2015

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