On February 1, 2014, Marsh Contractors agreed to construct a building at a contract price of $5,800,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2016. Information relating to the costs and billings for this contract is as follows:

2014 2015 2016

Total costs incurred to date $1,500,000 $2,640,000 $4,600,000

Estimated costs to complete 2,500,000 1,760,000 -0-

Customer billings to date 2,200,000 4,000,000 5,600,000

Collections to date 2,000,000 3,500,000 5,500,000

Instructions

Fill in the correct amounts on the following schedule.

Part A:

Percentage-of-Completion Completed-Contract

Gross Profit Gross Profit

2014 ___________ Revenue 2014 ___________ Revenue

___________ Expenses ___________ Expenses

___________ Gross Profit ___________ Gross Profit

2015 ___________ Revenue 2015 ___________ Revenue

___________ Expenses ___________ Expenses

___________ Gross Profit ___________ Gross Profit

2016 ___________ Revenue 2016 ___________ Revenue

___________ Expenses ___________ Expenses

___________ Gross Profit ___________ Gross Profit

Part B

Under the percentage of completion, method calculate for each year if you are over or under billed.

2014: _____________

2015: _____________

2016: _____________

PLEASE SHOW ALL YOUR WORK! THANKS IN ADVANCE!!