Please do not give image format During 2025, Pharoah Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. Thefollowing information is available.Costs incurred to dateEstimated costs to completeBillings to dateCollections to date2025$373,700636,300303,000273,0002026$902,000198,000899,000807,0002027$1,070,000-0-1,620,0001,412,000 (a)Your answer is correct.Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.Gross profit recognized in 2025 $Gross profit recognized in 2026Gross profit recognized in 2027 $Show Transcribed TextAccount Titles and Explanation(To record cost of construction.)$(To record progress billings.)(To record collections.)3225700Prepare all necessary journal entries for 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is naccount titles and enter O for the amounts. For costs incurred use account Materials, Cash, Payables. List all debit entries before credit entries)200700123600ĆDebitCredit

Percentage of Completion Method:The ongoing recognition of income and costs associated with…

During 2025, Pharoah Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2025 2026 $373,700 $902,000 636,300 198,000 303,000 899,000 273,000 807,000 2027 $1,070,000 -0- 1,620,000 1,412,000

During 2025, Pharoah Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2025 2026 $373,700 $902,000 636,300 198,000 303,000 899,000 273,000 807,000 2027 $1,070,000 -0- 1,620,000 1,412,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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