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Question On March 1, 2017, Peach Construction Co. contracted to construct a factory building for Fab

Question On March 1, 2017, Peach Construction Co. contracted to construct a factory building for Fab

On March 1, 2017, Peach Construction Co. contracted to construct a factory building for Fabco Mfg. Inc. for a total contract price of $8M. The building was completed by Oct. 31, 2019. The annual contract costs incurred, estimated costs to complete, and accumulated billings are given below:

                                                   2017             2018           2019               

Costs incurred

during the year            $2,880,000      $2,230,000     $3,890,000

Est. costs to

complete                        3,520,000       3,890,000         -0-

Billings during the yr. 3,000,000      3,300,000       1,700,000

Prepare year-end journal entries to record profit or loss on the project under the percentage of completion method for 2017, 2018, and 2019.

 
manish jayant 22-Apr-2020

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