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 $5,730,000. Marsh estimated total construction costs would be $3,944,000

On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $5,730,000. Marsh estimated total construction costs would be $3,944,000 and the project would be finished in 2019. Information relating to the costs and billings for this contract is as follows:

image text in transcribed

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.

Percentage-of-Completion Gross Profit

2017-

2018-

2019-

Completed-Contract Gross Profit

2017-

2018-

2019-

2017 2018 2019 Total costs incurred to date $1,479,000 $2,598,000 $4,565,000 Estimated costs to complete 2,465,000 1,732,000 -0 Customer billings to date 2,130,000 3,944,000 5,530,000 Collections to date 1,930,000 3,430,000 5,430,000

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_2

Step: 3

blur-text-image_3

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

The Book Marketing Audit

Authors: Kilby Blades

1st Edition

0985798335, 978-0985798338

More Books

Students also viewed these Accounting questions