Chapter 8, Problem 8.5P

a.

To determine

The percent completed.

Given information:

Contract price is $800,000.

Actual construction cost for 2015 is $200,000.

Actual construction cost for 2016 is $300,000.

Actual construction cost for 2017 is $150,000.

Estimated total cost for 2015 is $600,000.

Estimated total cost for 2016 is $800,000.

Estimated total cost for 2017 is $650,000.

b.

To determine

The revenue and gross profit for all the years.

c.

To determine

To prepare: The journal entry.

d.

To determine

To prepare: A t-account for construction in progress, billings on construction in progress and accounts receivable.

e.

To determine

The net assets or liability for each year of the contract.