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Unformatted text preview: (d) How much gross profit should be reported for 2010? Show your computation. (a) Revenue should be reported for 2009: 5,500,000*(1,650,000/3,450,000)= 2,630,435 (b) Account receivable 2,400,000 Billing on construction in process 2,400,000 (c) Construction in Process (gross profit) 980,435 Construction expense 1,650,000 Revenue from long-term contract 2,630,435 (d) Gross profit should be reported of 2010 = (5,500,000-1,650,000-2,100,000)- 980,435 = 769,565 Page 1...
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This note was uploaded on 03/27/2012 for the course ACCT 3321 taught by Professor Chambers during the Spring '09 term at Texas A&M University, Corpus Christi.
- Spring '09