XYZ Construction Company has contacted to build and office building. The construction is scheduled to begin on
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Question:
XYZ Construction Company has contacted to build and office building. The construction is scheduled to begin on 1/1/15, and the estimated time of completion is 7/1/18. The building cost is estimated to be $40,000,000,000 and will be billed at $48,000,000. The following data relate to the construction period.
Required:
a. Compute the estimated gross profit for 2015, 2016, 2017, and 2018 assuming that the percentage ?of-completion method is used.
b. Prepare the necessary journal entries for XYZ for the year 2017 and 2018.
c. Show the relevant balance sheet and income statement sections for 2017.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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