Reference no: EM13332071
Problem 6-2 (Part Level Submission)
Daisy Construction Ltd. has entered into a contract beginning January 1, 2014, to build a parking complex. It has estimated that the complex will cost $8 million and will take three years to construct.
The complex will be billed to the purchasing company at $11.2 million. The details are as follows:
2014 2015 2016
Costs to date $ 3,060,000 $ 6,435,000 $ 8,450,000
Estimated costs to complete 4,596,100 1,985,677 -0-
Progress billings to date 4,001,100 6,300,000 11,200,000
Cash collected to date 3,501,100 5,000,000 11,200,000
Under the earnings approach
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: Daisy Construction Ltd. has entered into a contract beginning January 1, 2014, to build a parking complex. It has estimated that the complex will cost $8 million and will take three years to construct.
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