Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $5,770,000. Marsh estimated total construction costs would be $3,976,000

On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $5,770,000. Marsh estimated total construction costs would be $3,976,000 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 $1,491,000 $2,622,000 $4,585,000
Estimated costs to complete 2,485,000 1,748,000 -0-
Customer billings to date 2,170,000 3,976,000 5,570,000
Collections to date 1,970,000 3,470,000 5,470,000

Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2017, 2018, and 2019.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin Arens

13th Edition

0136084737, 9780136084730

More Books

Students also viewed these Accounting questions

Question

12. The x2 value is: (a) 12.162 (b) 21.516 (c) 22.305 (d) 525

Answered: 1 week ago