In 2012, Gurney Construction Company agrees to construct an apartment building at a price of $1,200,000. The information relating to the costs and buildings for the contract shown below:
Costs 2012 2013 2014
Costs incurred to date $280,000 $600,000 $785,000
Estmated costs yet incurred 520,000 200,000 0
Customer billings to date 150,000 500,000 1,200,000
collection to billings to date 120,000 320,000 940,000
The solution gives detailed steps on computing the gross profit for a specifc question and then preparing a journey entry. All formula and calculations are shown and explained.