Trenton Construction Company has contracted to build an office building. The construction is scheduled to begin on
Fantastic news! We've Found the answer you've been seeking!
Question:
2022 2023 2024 2025
Cost to date $5,500,000 $10,000,000 $13,500,000 $20,000,000
Estimated cost to complete. 14,500,000 10,000,000 6,500,000 -0-
Progress billings to date. 3,000,000 9,000,000 14,000,000. 24,000,000
Cash collected to date 3,000,000 7,500,000 12,500,000. 24,000,000
Instructions:
(a) Compute the estimated gross profit for 2022, 2023, 2024, and 2025 assuming that the percentage-of-completion
method is used.( Prepare a schedule using cell-formula)
(b) Prepare the necessary journal entries for Trenton Construction Company for the years 2024 and 2025 under percentage-of-
completion method.
(c) Prepare the necessary journal entries for Trenton Construction Company for the years 2024 and 2025 under completed contract
method.
Related Book For
Posted Date: