Hinson 5-2 Percentage of Completion Method

Hinson 5-2 Percentage of Completion Method - 8,000,000...

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Intermediate Accounting I Assignment 5-2 Percentage of Completion Method Jamie Hinson 4-Feb-08 WESTGATE CONSTRUCTION COMPANY Requirement 1: Gross profit to be recognized 2006 2007 Contract price $10,000,000 $10,000,000 Actual costs to date 2,400,000 3,600,000 Estimated costs to complete 5,600,000 2,000,000 Total estimated costs 8,000,000 5,600,000 Estimated gross profit (loss) $2,000,000 $4,400,000 Percentage-of-completion - Actual costs to date 2,400,000 3,600,000 divided by the estimated total project cost
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Unformatted text preview: 8,000,000 5,600,000 30% 65% Total project gross profit 2,000,000 4,400,000 multiplied by the % of completion 30% 65% gross profit earned to date 600,000 2,860,000 less gross profit recognized in pervious periods-600,000 Gross profit (loss) 2006 2007 recognition: $600,000 $2,260,000 2008 $10,000,000 2,200,000 0 2,200,000 $7,800,000 2,200,000 2,200,000 100% 7,800,000 100% 7,800,000-2,860,000 2008 $4,940,000...
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This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

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Hinson 5-2 Percentage of Completion Method - 8,000,000...

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