Tuscany Boatbuilders was recently awarded a $17,000,000 contract to construct a luxury liner for Queen Cruiseliners Inc.
Question:
Tuscany Boatbuilders was recently awarded a $17,000,000 contract to construct a luxury liner for Queen Cruiseliners Inc. Tuscany estimates it will take 42 months to complete the contract. The company uses the cost-to-cost method to estimate profits. The following information details the actual and estimated costs for the years 2010–2013.
Instructions:
1. Compute the revenue, cost, and gross profit to be recognized for each of the years 2010–2013 under the percentage-of-completion method.
2. Give the journal entries for each of the years 2010–2013 to record the information from(1).
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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