Long-Term Contracts.Edwards Company contracted on 4/1/14 to construct a building for $2,400,000. The project was completed in 2016. Additional data follow:
Instructions
(a) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2014, 2015, and 2016.
(b) Prepare all necessary entries for the year 2015.
(c) Present the balance sheet disclosures at December 31, 2015. Proper headings or subheadings must be indicated.

Question

Long-Term Contracts.Edwards Company contracted on 4/1/14 to construct a building for $2,400,000. The project was completed in 2016. Additional data follow:  
Instructions
(a) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2014, 2015, and 2016.
(b) Prepare all necessary entries for the year 2015.
(c) Present the balance sheet disclosures at December 31, 2015. Proper headings or subheadings must be indicated.

Quizplus · Accepted Answer

The Answer of Long-Term Contracts.Edwards Company contracted on 4/1/14 to construct a building for $2,400,000. The project was completed in 2016. Additional data follow:  
Instructions
(a) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2014, 2015, and 2016.
(b) Prepare all necessary entries for the year 2015.
(c) Present the balance sheet disclosures at December 31, 2015. Proper headings or subheadings must be indicated.