Complete the exercise on Ch18 PowerPoint Slide #73. Hint: In this problem, it is the amount of construction cost incurred in the current year that is provided, not the cost incurred to date. Therefore, to compute the percentage of completion in the 2nd and 3rd year, you should add the cost incurred in the previous year(s) to the current year to find the total cost incurred to date.

Requirements:

1. Calculate the percentage of completion, revenue and gross profit to be recognized in each year. Show your work.

2. Prepare the journal entries in all years.

3. Present partial Income Statement and Balance Sheet relating to this long-term construction contract for the first two years.

You can either type your answers or write on paper. If you write on paper, take photos and submit the files/photos via the Assignment link. No HEIC format for photos.

Illustration: Casper Construction Co. Illustration: Casper Construction Co