In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3-year period (2013
Question:
In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3-year period (2013 through 2015). The contract price is $1,200,000, and the construction costs (both actual and estimated) total $705,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 20%; 2014, 75%; 2015, 100%.
Required:
1. Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of completion method.
2. Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the completed contract method.
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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