On february 1,2007, nance contractors agreed to construct a building

On February 1,2007, Nance Contractors agreed to construct a building at a contract price of $6,000,000. Nance estimated total construction costs would be $4,000,000 and the project would be finished in 2009. Information relating to the costs and billings for this contract is as follows:

2007                2008                2009

Total costs incurred to date                $1,500,000     $2,640,000     $4,600,000

Estimated costs to complete                 2,500,000       1,760,000            -0-

Customer billings to date                     2,200,000       4,000,000       5,600,000

Collections to date                               2,000,000       3,500,000       5,500,000

Instructions

Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2007.

Percentage-of-Completion                 Completed-Contract

Gross Profit                                        Gross Profit

2007                _________________             2007   __________________

2008                                                    _____ 2008   __________________

 

2009                _________________             2009___________________ 

The post On february 1,2007, nance contractors agreed to construct a building appeared first on Australia Assessments.

Our writing company helps you enjoy campus life. We have committed and experienced tutors and academic writers who have a keen eye in writing papers related to Business, Management, Marketing, History, English, Media studies, Literature, nursing, Finance, Medicine, Archaeology, Accounting, Statistics, Technology, Arts, Religion, Economics, Law, Psychology, Biology, Philosophy, Sociology, Political science, Mathematics, Engineering, Ecology etc.

Need Custom Written Paper?

-Plagiarism free

-Timely delivery