Question
Sandhill Construction entered into a contract to construct a bridge for a contract price of $2.90 million. Construction began in 2019 and was completed in
Sandhill Construction entered into a contract to construct a bridge for a contract price of $2.90 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract:
| 2019 | 2020 | 2021 | ||||
| Costs incurred during the year | $635,000 | $856,000 | $691,900 | |||
| Estimated costs to complete | 1,397,000 | 509,000 | 0 |
Calculate the revenue, expenses and gross profit to be recognized each year using the percentage-of-completion method. (Round the percentage completion to 2 decimal places, e.g. 52.75% and other answers to 0 decimal places, e.g. 1,525.)
| 2019 | 2020 | 2021 | ||||
| Revenue | $ | $ | $ | |||
| Expenses | ||||||
| Gross Profit | $ | $ | $ |
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Core Concepts Of Accounting Information Systems
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman
11th Edition
9780470507025, 0470507020
