Question
Ivanhoe Construction entered into a contract to construct a bridge for a contract price of $2.80 million. Construction began in 2019 and was completed in
Ivanhoe Construction entered into a contract to construct a bridge for a contract price of $2.80 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract:
| 2019 | 2020 | 2021 | ||||
| Costs incurred during the year | $653,000 | $806,000 | $709,900 | |||
| Estimated costs to complete | 1,436,600 | 541,000 | 0 |
Calculate the revenue, expenses and gross profit to be recognized each year using the percentage-of-completion method. (Round the percentage completion to 2 decimal places, e.g. 52.75% and other answers to 0 decimal places, e.g. 1,525.)
| 2019 | 2020 | 2021 | ||||
| Revenue | $ | $ | $ | |||
| Expenses | ||||||
| Gross Profit | $ | $ | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
