In 2007 Jeff Rouse Construction Company agreed to construct an apartment building at a price of $1,000,000.

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In 2007 Jeff Rouse Construction Company agreed to construct an apartment building at a price of $1,000,000. The information relating to the costs and billings for this contract is as follows.

Instructions
Assuming that the percentage-of-completion method is used, compute the amount of gross profit to be recognized in 2007 and2008.

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Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

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Question Posted: May 10, 2012 01:41 AM

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In 2007 Jeff Rouse Construction Company agreed to construct an apartment building at a price of $1,000,000.

Question:

2007 2008 Costs incurred to date Estimated costs yet to be incurred Customer billings to date Collection of billings to date $280,000 $600,000 200,000 400,000 520,000 150,000 120000 320,000 2009 785,000 1,000,000 1, 940,000

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Gross profit recognized in 2007 Contract price 1000000 Costs ...View the full answer

Intermediate Accounting principles and analysis

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