Question
In 2013, the Plumbing Company entered into a contract to construct a road for San Diego County for $12,000,000. The road was completed in 2015.
In 2013, the Plumbing Company entered into a contract to construct a road for San Diego County for $12,000,000. The road was completed in 2015. Information related to the contract is as follows:
| 2013 |
| 2014 |
| 2015 |
Cost incurred during the year | $3,000,000 | $3,800,000 | $2,700,000 | ||
Estimated costs to complete as of year-end | 6,300,000 | 2,400,000 | 0 | ||
Billings during the year | 3,700,000 | 4,000,000 | 4,300,000 | ||
Cash collections during the year | 2,800,000 | 4,800,000 | 4,400,000 |
Calculate the amount of revenue and gross profit to be recognized in each of the years (2013, 2014, and 2015).
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