Prepare schedules to calculate the amount of gross profit

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Oriole Construction Company began operations on January 1, 2020. During the year, Oriole entered into a non-cancellable contract with Cheyenne Corp. to construct a manufacturing facility. At that time, Oriole estimated that it would take five years to complete the facility at a total cost of $4,484,000. The total contract price for construction of the facility is $5,972,000. During the year, Oriole incurred $1,082,400 in construction costs related to the project. The estimated cost to complete the contract is $4,329,600. Cheyenne Corp. was billed and paid 25% of the contract price. The billings are non-refundable.

Problem 1: Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31, 2020

Reference no: EM132802896

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