The company uses the percentage-of-completion method of

Assignment Help Accounting Basics

Reference no: EM13567799

In 2013, the company entered into a contract to construct a road for a customer for $10,000,000. The road was completed in 2015. Information related to the contract is as follows:

2013 2014 2015

Billings during year $ 2,000,000 $4,000,000 $4,000,000

Cash collections during year $ 1,800,000 $3,600,000 $4,600,000

Contract price $ 10,000,000 $ 10,000,000 $ 10,000,000

Cost incurred $ 2,400,000 $ 3,600,000 $2,200,000

Estimated cost to complete $ 5,600,000 $ 2,000,000 --

The company uses the percentage-of-completion method of accounting for long-term construction contracts.

Calculate the amount of gross profit to be recognized in each of the three years.
Prepare a partial balance sheet for each year showing the items related to the contract.

Reference no: EM13567799

Questions Cloud

Kay corporation 5-year bonds yield 620 and 5-year t-bond : kay corporation 5-year bonds yield 6.20 and 5-year t-bond yield 4.40. the real risk rate is r2.5 the inflation premium

What would be the current ratio and acid test : tahoulan ltd balance sheet extracts as at 31 decembernbsp20132014current

Nick and jolene are married nick is 61 and retired in 2011 : nick and jolene are married. nick is 61 and retired in 2011 from his job with amalgamated company. jolene is 56 and

Describe the different types of interviews that can be used : describe the different types of interviews that can be used for employee selection. when would be an appropriate time

The company uses the percentage-of-completion method of : in 2013 the company entered into a contract to construct a road for a customer for 10000000. the road was completed in

You are a member of a chinese royal family in the third : please answer one question from part a and one question from part b.part a1.you are a member of a chinese royal family

A deficiency uncovered in the audit of internal control is : a deficiency uncovered in the audit of internal control is explained by which of the following in relation to a

The following are extracts taken from the summarized : the following are extracts taken from the summarized balance sheet of carlin plc as at 31 december

The auditor in auditing payroll wants to determine that : the auditor in auditing payroll wants to determine that the individuals included in her sample were employees of the

User Account

All Pages