AC 302 WEEK 2 Problem 18A 10

AC 302 WEEK 2 Problem 18A 10
Shanahan Construction Company has entered into a contract beginning January 1 2014 to build a parking complex. It has been estimated that the complex will cost $540,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $810,000. The following data pertain to the construction period.
		2014		2015		2016
Costs to date		$243,000		$405,000		$549,000
Estimated costs to complete		297,000		135,000		0
Progress billings to date		243,000		495,000		810,000
Cash collected to date		216,000		450,000		810,000



	 
 
 	Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
		2014	2015	2016
Gross profit / (loss) that recognized		$  
$  
$  




Link to Text



	 
 
 	Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
	2014	2015	2016
Gross profit / (loss) that recognized	$  
$  
$  


Click if you would like to Show Work for this question:	Open Show Work




Link to Text