On February 1, 1882, Jacobsen Gonna Build dat House Construction Company Incorporated, LLC agreed to construct a boat at a contract price of $8,000,000. JGBdHCC estimated total construction costs would be $5,525,000 and the project would be finished in 1884. Information relating to the costs and billings for this contract is as follows:

1882 1883 1884

Total costs incurred to date $2,021,250 $3,705,000 $6,150,000

Estimated costs to complete 3,503,750 2,445,000 -0-

Customer billings to date 2,500,000 6,250,000 8,000,000

Collections to date 2,000,000 5,000,000 7,500,000

Instructions

Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting:

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Percentage-of-Completion Completed-Contract

Revenue Revenue

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1884 ___________ 1884 ___________

Percentage-of-Completion Completed-Contract

Gross Profit Gross Profit

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1883 ___________ 1883 ___________

1884 ___________ 1884 ___________

Over/Under

Billed

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1883 ___________

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