Homework Help is Here – Start Your Trial Now!
Business
Accounting
stimat- r this

stimat- r this

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
On February 1, 2015, Jaddua Johnston Contractors agreed to construct a building for Satish Thapa at a contract price of $5,800,000. Johnston estimated total construction cost would be $4,000,000 and the project would be finished in 2017. Information relating to the costs and billings for this contract is as follows: 2015 2016 2017 Totals Total costs incurred to-date $ 1,500,000 $ 2,640,000 $ 4,600,000 $ 8,740,000 Estimated costs to complete 2,500,000 1,760,000 4,260,000 Customer billings to-date |Collections to-date 2,200,000 11,800,000 2,000,000 4,000,000 3,500,000 5,600,000 5,500,000 11,000,000 Required: (1) prepare a schedule showing gross profit to be recognized each year under % completion method. (2)Compute the gross profit to be recognized in 2017 under the completed-contract method. (3) Prepare Journal entries for 2016 under % of completion method. #(1) Schedule of gross profit recognized under % of Completion method: 2015 2016 2017
Transcribed Image Text:On February 1, 2015, Jaddua Johnston Contractors agreed to construct a building for Satish Thapa at a contract price of $5,800,000. Johnston estimated total construction cost would be $4,000,000 and the project would be finished in 2017. Information relating to the costs and billings for this contract is as follows: 2015 2016 2017 Totals Total costs incurred to-date $ 1,500,000 $ 2,640,000 $ 4,600,000 $ 8,740,000 Estimated costs to complete 2,500,000 1,760,000 4,260,000 Customer billings to-date |Collections to-date 2,200,000 11,800,000 2,000,000 4,000,000 3,500,000 5,600,000 5,500,000 11,000,000 Required: (1) prepare a schedule showing gross profit to be recognized each year under % completion method. (2)Compute the gross profit to be recognized in 2017 under the completed-contract method. (3) Prepare Journal entries for 2016 under % of completion method. #(1) Schedule of gross profit recognized under % of Completion method: 2015 2016 2017
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS