The Urban Construction Company commenced doing business in January 2002.Construction activities for the year 2002 are summarized in the following table.

The company is your client. The president has asked you to compute the amounts of revenue for the year ended December 31, 2002, that would be reported under the completed-contract method and the percentage-of-completion method of accounting for long-term contracts.
The following information is available:

(a) Each contract is with a different customer.

(b) Any work remaining to be done on the contracts is expected to be completed in 2003.

(c) The company's accounts have been maintained on the completed-contract method.

Instructions:
1. Prepare a schedule computing the amount of revenue, cost, and gross profit (loss)
by project for the year ended December 31, 2002, to be reported under (a) the percentage-of completion method and (b) the completed-contract method. (Round to two decimal places on percentages.)
2. Prepare a schedule under the completed-contract method, computing the amount that would appear on the company's balance sheet at December 31, 2002, for (a) costs in excess of billings and (b) billings in excess of costs.
3. Prepare a schedule under the percentage-of-completion method that would appear on the company's balance sheet at December 31, 2002, for (a) costs and estimated earnings in excess of billings and (b) billings in excess of costs and estimated earnings.

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Project ABCD A.. B. $ 310,000 415,000 350,000 Total Contract Price Contract Expenditures to Dec. 31, 2002 $187,500 195,000 310,000 Estimated Additional Costs to Complete Contracts $ 12,500 Cash Collections to Dec. 31, 2002 $155,000 210,000 Billings to Dec. 31, 2002 $155,000 255,000 249,000 0 300,000 350,000 300,000 16,500 183,500 0 4,000 $1,375,000 $709,000 $451,000 $665,000 $758,000