Solution-Compute the estimated gross profit

Compute the estimated gross profit

Assignment Help Accounting Basics

Reference no: EM132524020

Question - Evans Construction Company has entered into a contract beginning January 1, 2018, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period.

	2018	2019	2020
Costs to date	270,000	450,000	610,000
Estimated costs to complete	330,000	150,000	0
Progress billings to date	270,000	550,000	900,000
Cash collected to date	240,000	500,000	900,000

Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

Do the complete set of journal entries for 2018 and 2019, assuming all costs are on account (using the percentage-of-completion method).

Reference no: EM132524020

Questions Cloud

What is the proper entry for this transition : Gomez company issues $9,000,000 of bonds with a coupon rate of 8%. What is the proper entry for this transition

What kind of relationship would a newly hired accountant : What kind of relationship would a newly hired accountant anticipate building in a global corporation versus a small local business?

What is the beginning work in process balance : Which types of these special short run decisions is management likely to need to make? Which of the following is not a Capital Budgeting Method?

What is the firm expected dividend stream : a) What is the firm's expected dividend stream over the next 3 years? b) What is the firm's current stock price?

Compute the estimated gross profit : Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period

Capital allocation line derived from the risk-free : Graph the Capital Allocation Line derived from the risk-free asset and portfolio A. (Label all axes and points carefully).

Calculate the size of monthly payment : Calculate the size of each monthly payment and then prepare loan amortization schedule to show that as time passes the amount paid in interest by your client

What the payback period of the investment is closest to : What The payback period of the investment is closest to? Rents Corp. is considering a project that would require an initial investment of $280,000

What is the time value of money : What is the time value of money? Explain using the above scenario and draw a timeline depicting all the Cash flows associated with Obrien's view of the retirem

User Account

All Pages

Compute the estimated gross profit

Reference no: EM132524020

Reference no: EM132524020

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT