# On February 1, 2016, Aplus Construction Company (ACC) agreed to construct a building at a contract price of \$10,000,000.

Anonymous
timer Asked: Oct 15th, 2018
account_balance_wallet \$9.99

### Question Description

• In 2016, ACC estimated total construction costs would be \$8,500,000 and the project would be finished in 2018.
• Information relating to the costs and billings for this contract is as follows:

2016 2017 2018

Total costs incurred to date \$2,635,000 \$6,365,000 \$9,475,000

Estimated costs to complete 5,865,000 3,135,000 -0-

Customer billings to date 2,750,000 6,500,000 10,000,000

Collections to date 2,150,000 5,850,000 9,100,000

Instructions

Assume ACC uses percentage-of-completion accounting method.

(a) Compute the amount of gross profit to be recognized each year. (4.5 points)

(b) Prepare all necessary journal entries for 2017. (6.5 points

FrankRose23
School: Cornell University

Here are the solutions. Let me know if there is anything else.

Assume ACC uses percentage-of-completion accounting method.
(a) Compute the amount of gross profit to be recognized each year.

Contract Price (C)
Total co...

flag Report DMCA
Review

Anonymous
awesome work thanks

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors