Solution-Prepare partially income statements for the year

Prepare partially income statements for the year

Reference no: EM132575882

Question - Marcus Construction Company has a contract to construct a $160,000 shopping mall at an estimated cost of $125.000. The contract is to start in 2018, and the shopping mall is to be completed in 2020. The following data pertain to the construction period.

	2018	2019	2020
Yearly Cost	$37,500	$62,500	$25,000
Cost to Date (cumulative)	37,500	100,000	125,000
Estimated Cost to Complete	87,500	25,000	-
Progress Billing During The Year	54,000	76,000	30,000
Cash Collected During The Year	35,200	85,800	37,600

Required -

a) Prepare partially Income Statements for the year 2018, 2019, and 2020 by using Completed Contract Method.

b) Prepare partially Income Statements for the year 2018, 2019, and 2020 by using Percentage of Completion Method. Show your calculations.

Reference no: EM132575882

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Prepare partially income statements for the year

Reference no: EM132575882

Reference no: EM132575882

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