This assignment is graded on the following:
Schedules are completed in totality for each year, with a profitloss amount calculated for each year points
Appropriate use of Excel Use of cell references for amounts if given in the problem data and use of formulas for all calculations points
Company Background Information:
On July Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. On July
Torvill estimated that it would take between and years to complete the building. On December the building
was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete
the contract, and accumulated billings to Gumbel for and
Instructions
a Using the percentageofcompletion method, prepare a schedule to compute the profit or loss to be
recognized as a result of this contract for the years ended December and Ignore
income taxes.
b Using the cost recovery method, prepare a schedule to compute the profit or loss to be recognized as a result
of this contract for the years ended December and Ignore income taxes.
