The Rushing Construction Company obtained a construction contract to build a highway and bridge over the Snake
Question:
The Rushing Construction Company obtained a construction contract to build a highway and bridge over the Snake River It was estimated at the beginning of the contract that it would take 3 years to complete the project at an expected cost of \($50,000,000\).The contract price was \($60,000,000.\) The project actually took 4 years, being accepted as completed late in 2003. The following information describes the status of the job at the close of production each year.
Instructions:
1 . What is the revenue, cost, and gross profit recognized for each of the years 2.2000-2004 under (a) the percentage-of-completion method and (b) the completedcontract method?
Give the journal entries for each year assuming that the percentage-of-compietion method is used.
Step by Step Answer:
Intermediate Accounting
ISBN: 9780324013078
14th Edition
Authors: Fred Skousen, James Stice, Earl Kay Stice