How much revenue should be reported

Question

Howard Construction Co. contracted to build a bridge for $3,000,000. Construction began in 2012 and was completed in 2013. Data relating to the construction are:

2012 2013
Costs incurred $990,000 $825,000
Estimated costs to complete 810,000 -

Howard uses the percentage-of-completion method.

Instructions (Need to attempt any 4):

(a) How much revenue should be reported for 2012?

(b) Make the entry to record progress billings of $1,000,000 during 2012.

(c) Make the entry to record the revenue and gross profit for 2012.

(d) How much gross profit should be reported for 2013?

(e) Show the Balance Sheet Presentation for 2012.

Answer 1

Solution of the problem done in excel file, all its includes that How much revenue should be reported for 2012, entry to record progress billings, gross profit. All the workings and calculation shown in the solution file.