Percentage of Completion Method

In 2013, Tarlo Company agrees to construct a highway for Brice county over a-year period (2013 though 2015). The contract price $1,410,000 and the construction costs (both actual and estimated) total $735,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 20%; 2014, 70%; 2015, 100%

1.Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of -completion method.

Tario Compaany

Gross Profit Percentage of Completion Method

2013 through 2015

2013_________________

2014___________________

2015________________

Total Gross Profit____________________

2.Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the completed-contract method. If an amount is zero, enter"0".

Tarlo Company

Gross Profit: Completed-Contract Method

2013 though 2015

2013_________________

2014_________________

2015______________

Total gross profit__________________