Horner Construction Co. uses the overtime/percentage-of-completion method. In 2014, Horner began work on a contract for $5,500,000; it was completed in 2015. The following cost data pertain to this contract: Year ended December 31 2014 2015 Costs incurred during the year $1,950,000 $1,400,000 Estimated costs to complete at the end of year 1,300,000 — The amount of gross profit to be recognized on the income statement for the year ended December 31, 2015 is? If the point in time/ cost recovery method (zeroprofit approach) of accounting was used, the amount of gross profit to be recognized for years 2014 and 2015 would be?
Horner Construction Co. uses the overtime/percentage-of-completion method. In 2014, Horner began work on a contract for $5,500,000; it was completed in 2015. The following cost data pertain to this contract:
Year ended December 31
2014 2015
Costs incurred during the year $1,950,000 $1,400,000
Estimated costs to complete at the end of year 1,300,000 —
The amount of gross profit to be recognized on the income statement for the year ended December 31, 2015 is?
If the point in time/ cost recovery method (zeroprofit approach) of accounting was used, the amount of gross profit to be recognized for years 2014 and 2015 would be?
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