Percentage of completion method dalton construction

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Intermediate Accounting: Reporting and Analysis
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Chapter 17 / Exercise RE17-17
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
Problem 5—Percentage-of-completion methodDalton Construction Co. contracted to build a bridge for $8,000,000. Construction began in 2014and was completed in 2015. Data relating to the construction are:20142015Costs incurred during the year$2,640,000$2,200,000Estimated costs to complete2,160,000Dalton uses the percentage-of-completion method.Instructions(a)How much revenue should be reported for 2014? Show your computation.(b)Make the entry to record progress billings of $3,300,000 during 2014.(c)Make the entry to record the revenue and gross profit for 2014.(d)How much gross profit should be reported for 2015? Show your computation.
Problem 6—Percentage-of-completion and completed-contract methodsBeavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and completed in 2013. Cost and other data are presented below:(1) Assume that Beavis uses the percentage-of-completion method for revenue recognition.
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Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 17 / Exercise RE17-17
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
A.Compute the amount of gross profit recognized during 2012 and 2013.B.Prepare all journal entries to record costs, billings, collections, and profit recognition.
(2) Assume that Beavis uses the completed contract method for revenue recognition.A.Compute the amount of gross profit recognized during 2012 and 2013.B.Assume that Beavis uses the completed contract method for revenue recognition.Prepare all journal entries to record costs, billings, collections, and profit recognition.

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