{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 18 Solutions

# Chapter 18 Solutions - gross profit 770,000 Gross profit in...

This preview shows pages 1–3. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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)...
View Full Document

{[ snackBarMessage ]}