percentage$-$of$-$completion method. During $2023,$ Blossom incurred costs of $$960,000$ ralated to this project. The estimatad cost at

December $31,2023,$ to complete the contract is $$1,440,000.$ Eridgeport was billad $$720,000$ under the contract. The billings are nan$-$

refundable.

$($a$)$

Your answer is correct.

Prepare a schedule to calculate the amount of gross profit to be recosnized by Blossom under the contract for the year ended

December $31,2023.$

BLOSSOM INC.

Computation of Gross Profit to be

Recognized on Uncompleted Contract

Year Endad Docimber $31,2023$

Total contract prics

Estimatad controct costa at complistion

Flued for:

$$2,400,000$

Total

Total catimetad cost

$2,400\mathrm{.}000$

Grow prof:

Percantise of oemeletion

Grow proft to be racopined

eTextbook and Medla

Llst of Accounts

$($b$)$

Your ancwer is partially correct.

Show how the contract will be reported on the income statement for the year ended Decamber $31,2023.$

BLOSSOM INC.

Partial Income Statement

Year Endad Dosember $31,2023$

Ravenus from Lenc$-$Term Contract$$

$

Construction Exporass

Grow Profit $/$ ILow$).$