In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3- year period (2013 through 2015). The contract price is $1,200,000, and the construction costs (both actual and estimated) total $630,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 15%; 2014, 75%; 2015, 100%. 1. Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of-completion method. Tarlo Company Gross Profit: Percentage-of Completion Method 2013 through 2015 2013 S 2014 2015 Total gross profit S 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 Completed-Contract 2013 through 2015 2013 2014 2015 S Total gross profit S Profit: Method
In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3- year period (2013 through 2015). The contract price is $1,200,000, and the construction costs (both actual and estimated) total $630,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 15%; 2014, 75%; 2015, 100%. 1. Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of-completion method. Tarlo Company Gross Profit: Percentage-of Completion Method 2013 through 2015 2013 S 2014 2015 Total gross profit S 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 Completed-Contract 2013 through 2015 2013 2014 2015 S Total gross profit S Profit: Method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Give me the answer
Transcribed Image Text:In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3-
year period (2013 through 2015). The contract price is $1,200,000, and the
construction costs (both actual and estimated) total $630,000 for the 3 years. The
percentage completed at the end of each year is as follows: 2013, 15%; 2014,
75%; 2015, 100%.
1. Prepare a schedule showing the amount of gross profit that Tarlo recognizes
each year using the percentage-of-completion method.
Tarlo
Company
Gross
Profit:
Percentage-of
Completion
Method
2013 through 2015
2013
S
2014
2015
Total gross profit S
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
Completed-Contract
2013 through 2015
2013
2014
2015
S
Total gross profit S
Profit:
Method
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education