Question

During 2014, Nilsen Company started a construction job with a contract price of $1,687,000. The job was completed in 2016. The following information is available. 2014 2015 2016

Costs incurred to date $399,840 $864,880 $1,078,000 Estimated costs to complete 552,160 273,120 –0– Billings to date 316,900 897,800 1,687,000 Collections to date 266,300 824,600 1,418,000

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

Prepare all necessary journal entries for 2015.

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