On February 1, 2014, Marsh Contractors agreed to construct a building at a contract price...
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Accounting
On February 1, 2014, Marsh Contractors agreed to construct a building at a contract price of $5,800,000. Marsh estimated total costs would be $4,000,000 and the project would be finished in 2016. Information relating to the costs and billings for this contract is as follows;
2014 2015 2016
Total costs incurred to date $1,500,000 $2,640,000 $4,600,000
Estimated cost to complete 2,500,000 1,760,000 -0-
Customer billings to date 2,200,000 4,000,000 5,600,000
Collections to date 2,000,000 3,500,000 5,500,000
Instructions
Fill in the correct amounts on the following schedule. For percent-of -completion accounting and for completed-contract accounting. Show your computations for the gross profit that should be recorded for 2014, 2015, and 2016.
