During 2019, Nilsen Company started a construction job with a contract price of $1,600,000

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During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2021. The following information is given with contract price, costs incurred, estimated costs to complete, partial billings, and collection.

 

2019 2020 2021

• Construction costs incurred to date...................... $400,000 $60,000 $1,070,00
• Estimated costs to complete the contract..........$600,000 $275,000 -
• Billings during the year...................................................$300,000 $600,000 $700,000
• Collections during the year...........................................$270,000 $540,000 $790,000

Instruction; On the basis of the data above,

A. Prepare the journal entries for year 2020 under percentage of completion method to record (1) the costs of construction, (2) progress billings, and (3) collections for Nilsen Construction (4) revenue, expense ans gross-profit and;

B. Show the partial balance sheet of 2020.