Prepare a schedule showing the amount of gross profit

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In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3-year period (2013 through 2015). The contract price is $1,350,000, and the construction costs (both actual and estimated) total $690,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 25%; 2014, 70%; 2015, 100%.

1) Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of-completion method.

Gross Profit: Percentage of Completion Method:

2013        $165,000
2014        Need Answer
2015        Need Answer

Total Gross Profit     Need Answer 

Reference no: EM131017420

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