Solution-Make the journal entry to record revenue and gross

Make the journal entry to record revenue and gross profit

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Reference no: EM133117944

Question - Percentage-of-completion method - Penner Builders contracted to build a high-rise for $14,000,000. Construction began in 2010 and is expected to be completed in 2013. Data for 2010 and 2011 are:

	2010	2011
Costs incurred to date	$1,800,000	$5,200,000
Estimated costs to complete	$7,200,000	$4,800,000

Penner Builders uses the percentage-of-completion method.

Required -

a. How much gross profit should be reported for 2010? Show your computation.

b. How much gross profit should be reported for 2011?

c. Make the journal entry to record the revenue and gross profit for 2011.

Reference no: EM133117944

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Make the journal entry to record revenue and gross profit

Reference no: EM133117944

Reference no: EM133117944

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