Prepare sections of the balance sheet and income statements

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Reference no: EM13215206

Kylie Builders Inc. is building a new home for Cassie Proffit at a contracted price of $200,000. The estimated cost at the time the contract is signed (January 2, 2013) is $115,000. At December 31, 2013, the total cost incurred is $60,000 with estimated costs to complete of $59,000. Kylie has billed $80,000 on the job and has received a $55,000 payment. This is the only contract in process at year-end.

1. Prepare the sections of the balance sheet and the income statement of Kylie Builders Inc. affected by these events assuming use of the percentage-of-completion method. Round percentage to two decimal places for percentage completed.

2. Prepare the sections of the balance sheet of Kylie Builders Inc. affected by these events assuming use of the completed-contract method.

Reference no: EM13215206

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