Percentage-of-completion method Robin Builders Ltd.contracted to build a high-rise for $6,000,000.Construction began in 2014 and is expected to be completed in 2017.Data for 2014 and 2015 are: Instructions Using the percentage-of-completion method and the cost-to-cost basis,
a)How much gross profit should be reported for 2014? Show your calculation.
b)How much gross profit should be reported for 2015? Show your calculation.
c)Prepare the journal entry to record the revenue and gross profit for 2015.

Question

Percentage-of-completion method Robin Builders Ltd.contracted to build a high-rise for $6,000,000.Construction began in 2014 and is expected to be completed in 2017.Data for 2014 and 2015 are:  Instructions Using the percentage-of-completion method and the cost-to-cost basis, 
a)How much gross profit should be reported for 2014? Show your calculation.
b)How much gross profit should be reported for 2015? Show your calculation.
c)Prepare the journal entry to record the revenue and gross profit for 2015.

Quizplus · Accepted Answer

The Answer of Percentage-of-completion method Robin Builders Ltd.contracted to build a high-rise for $6,000,000.Construction began in 2014 and is expected to be completed in 2017.Data for 2014 and 2015 are:  Instructions Using the percentage-of-completion method and the cost-to-cost basis, 
a)How much gross profit should be reported for 2014? Show your calculation.
b)How much gross profit should be reported for 2015? Show your calculation.
c)Prepare the journal entry to record the revenue and gross profit for 2015.

Percentage-Of-Completion Method Robin Builders Ltd