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On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $17,400. Marsh estimated total construction costs would be $12,000
On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $17,400. Marsh estimated total construction costs would be $12,000 and the project would be finished in 2019. Information relating to the costs and billings for this contract is as follows:
2017 | 2018 | 2019 | |
Total costs incurred to date | $4,500 | $7,920 | $13,800 |
Estimated costs to complete | 7,500 | 5,280 | -0- |
Customer billings to date | 6,600 | 12,000 | 16,800 |
Collections to date | 6,000 | 10,500 | 16,500 |
Assuming Marsh uses the percentage of completion methiod, please indicate what should be recorded for the following in 2018:
Expenses:
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