How the details would be disclosed on the balance sheet

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Gurney Construction Company

Recognition of Profit, Percentage-of-Completion In 2010 Gurney Construction Company agreed to construct an apartment building at a price of $1,200,000. The information relating to the costs and billings for this contract is shown below.

(a) Assuming that the percentage-of-completion method is used, (1) compute the amount of gross profit to be recognized in 2010 and 2011, and (2) prepare journal entries for 2011.

(b) For 2011, show how the details related to this construction contract would be disclosed on the balance sheet and on the income statement.

Reference no: EM131095630

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