ACC410 E18-4 - ............................ 425,000Accounts...

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EXERCISE 18-4 (a) Gross profit recognized in: 2010 2011 2012 Contract price $1,600,0 00 $1,600,00 0 $1,600,00 0 Costs: Costs to  date $400,00 0 $825,000 $1,070,000 Estimated  costs to  complete   600,00 0   1,000,0 00 275,000   1,100,00 0                 0   1,070,00 0 Total  estimated  profit 600,000 500,000 530,000 Percentage  completed to  date           40 % *           75% **          100 % Total gross  profit  recognized 240,000 375,000 530,000 Less:  Gross  profit  recognized in  previous years     0     240,00 0       375,0 00 Gross profit  recognized in  current year $   240,000 $   135,000 $   155,000 *$400,000 ÷ $1,000,000**$825,000 ÷ $1,100,000 (b) Construction in Process ($825,000 – $400,000). ....... 425,000 Materials, Cash, Payables, etc.
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Unformatted text preview: ............................ 425,000Accounts Receivable ($900,000 $300,000) 600,000 Billings on Construction in Process. ................... 600,000 Cash ($810,000 $270,000). .................................... 540,000 Accounts Receivable. ......................................... 540,000 Construction Expenses. ............................................. 425,000 Construction in Process. ............................................ 135,000 Revenue from Long-Term Contracts. ................. 560,000* 1 *$1,600,000 X (75% 40%) (c) Gross profit recognized in: 2010 2011 2012 Gross profit $0 $0 $530,000* *$1,600,000 $1,070,000 2...
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ACC410 E18-4 - ............................ 425,000Accounts...

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