Penner Builders contracted to build a high-rise for $35,000,000. Construction began in 2021 and is...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Penner Builders contracted to build a high-rise for $35,000,000. Construction began in 2021 and is expected to be completed in 2023. Data for 2021 and 2022 are:
2021 2022
Costs incurred to date $4,500,000 $13,000,000
Estimated costs to complete 18,000,000 12,000,000
Penner uses the percentage-of-completion method.
Instructions
(a) How much gross profit should be reported for 2021? Show your computation.
(b) How much gross profit should be reported for 2022?
(c) Make the journal entry to record the revenue and gross profit for 2022.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
