Chapter 18 Solution

# Chapter 18 Solution - 135,000 Gross profit in 2008 \$ 75,000...

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P18-2     2007 2008 2009   Contract price \$900,000 \$900,000 \$900,000   Less estimated cost:               Costs to date   270,000   420,000   600,000         Estimated cost to complete   330,000   180,000 -         Estimated total cost   600,000   600,000   600,000             Estimated total gross profit \$300,000 \$300,000 \$300,000 Gross Profit recognized in -    2007: \$270,000 X \$300,000 = \$135,000      \$600,000                       2008: \$420,000 X \$300,000 =   \$210,000     \$600,000                           Less 2007 recognized gross profit
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Unformatted text preview: 135,000 Gross profit in 2008 \$ 75,000 2009: \$600,000 X \$300,000 = \$300,000 \$600,000 Less 2007 - 2008 recognized gross profit 210,000 Gross profit in 2009 \$ 90,000 In 2007 and 2008, no gross profit would be recognized. Total billings \$900,000 Total cost 600,000 Gross profit recognized in 2009 \$ 300,000...
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