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
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.