In 2017, Dreyer Corp. began construction work under a 3-year contract, which represents a single performance obligation. The contract price is $800,000, and the performance obligation is satisfied over time. The financial statement presentations relating to this contract on December 31, 2017, follow:

Required:

1. How much cash did Dreyer collect during 2017?

2. What percentage complete is Dreyer as of the end of 2017?

3. What is the estimated gross profit before tax on the contract as of the end of 2017?

Transcribed Image Text:

Balance Sheet Accounts receivable Construction in progress Less: Progress billings Cost of uncompleted contract in excess of billings $15,000 $ 50,000 (47,000) 3,000 Income Statement Gross profit (before tax) on the contract $10,000 Balance Sheet Accounts receivable Construction in progress Less: Progress billings Cost of uncompleted contract in excess of billings $15,000 $ 50,000 (47,000) 3,000 Income Statement Gross profit (before tax) on the contract $10,000

Answer rating: 100% (QA)

Answer1 KING CONSTRUCTION COMPANY Gross profitLoss 2017 Particulars Amount ... View the full answer