Ava Limited., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.8 million beginning September 1, 2015, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2017. The following data pertain to the construction period. 2015 2016 2017 Costs to date $867,000 $1,804,800 $2,346,000 Estimated costs to complete 1,683,000 1,015,200 0 Progress billings to date (non-refundable) 921,000 2,296,000 2,800,000 Cash collected to date 767,000 2,177,000 2,800,000 Using the percentage-of-completion method, calculate the percentage complete for 2015 and 2016. (Round answers to 2 decimal places, e.g. 61.75%.)
Ava Limited., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.8 million beginning September 1, 2015, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2017. The following data pertain to the construction period.
|
|
2015 |
2016 |
2017 |
|
Costs to date |
$867,000
|
$1,804,800
|
$2,346,000 |
|
Estimated costs to complete |
1,683,000
|
1,015,200
|
0 |
|
Progress billings to date (non-refundable) |
921,000
|
2,296,000
|
2,800,000
|
|
Cash collected to date |
767,000
|
2,177,000
|
2,800,000
|
Using the percentage-of-completion method, calculate the percentage complete for 2015 and 2016. (Round answers to 2 decimal places, e.g. 61.75%.)
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Part 2.
Calculate the amount of revenue to be recognized in 2015 and 2016.
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