Chapter 18 Solutions - gross profit 770,000 Gross profit in 2009 $240,000(b AMANDA BERG CONSTRUCTION COMPANY Balance Sheet Current assets Accounts

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PROBLEM 18-4 (a) 2007 2008 2009 Contract price $6,600,000 $6,600,000 $6,510,000 Less estimated cost: Costs to date 1,782,000 3,850,000 5,500,000 Estimated cost to complete 3,618,000 1,650,000 Estimated total cost 5,400,000 5,500,000 5,500,000 Estimated total gross profit $1,200,000 $1,100,000 $1,010,000 Gross profit recognized in— 2007: $1,782,000 X $1,200,000 = $396,000 $5,400,000 2008: $3,850,000 X $1,100,000 = $770,000 $5,500,000 Less 2007 recognized gross profit 396,000 Gross profit in 2008 $374,000 2009: Less 2007–2008 recognized
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Unformatted text preview: gross profit 770,000 Gross profit in 2009 $240,000 (b) AMANDA BERG CONSTRUCTION COMPANY Balance Sheet December 31, 2008 _________________________________________________________ Current assets: Accounts receivable $ 300,000 ($3,100,000 – $2,800,000) Inventories Construction in process $4,620,000* Less: Billings 3,100,000 Costs and recognized profit in excess of billings 1,520,000 *$6,600,000 X ($3,850,000 ÷ $5,500,000)...
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This note was uploaded on 03/19/2008 for the course ACC 326 taught by Professor Atiase during the Spring '08 term at University of Texas at Austin.

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Chapter 18 Solutions - gross profit 770,000 Gross profit in 2009 $240,000(b AMANDA BERG CONSTRUCTION COMPANY Balance Sheet Current assets Accounts

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