On february 1 2013 arrow construction co entered into a

Reference no: EM13485563

On February 1, 2013, Arrow Construction Co. entered into a three year construction contract to build a bridge for a price of $8,000,000. During 2013, costs of $2,000,000 were incurred, with an estimated cost of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent and cash collected was $2,250,000.

In 2014, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2014, billings were $2,750,000 and $2,475,000 cash was collected. The project was completed in 2015 after additional costs of $3,800,000 were incurred. The company's fiscal year end is December 31. Arrow uses the percentage of completion method.

Calculate the amount of gross profit or loss to be recognized in each of the three years.

This is how the problem should be set up this is the table I have to fill out. (below)
2013 2014 2015

Contract price

Actual Cost to date

Estimated costs to complete

Total estimated costs

Estimated gross profit (loss) (actual in 2015)

Gross profit (loss) to be recognized

Reference no: EM13485563

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