FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Castro Construction signs a contract to build a hotel. The construction is
scheduled to begin on January 1, 2016 and is estimated to take four years to
complete. Castro expects that its total cost for this project would be $108
million and charges its client $151 million in total.
Based on the given actual costs incurred, complete the following table
showing the percentage of completion, revenue recognized and gross profit
for each year. Assume the company uses the percentage-of-completion
method for revenue recognition.
Do not enter dollar signs or commas in the input boxes.
Round all numbers to 1 decimal place.
Costs
Revenue
Percentage of
Completion
Year
Gross Profit*
Incurred*
Recognized*
2016
$12.96
% $
2017
$28.08
%
2018
$36.72
2019
$30.24
Total
$108.00
%
*The numbers are in million dollars.
%24
%24
%24
%24
%24
%24
%24
%24
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Transcribed Image Text:Castro Construction signs a contract to build a hotel. The construction is scheduled to begin on January 1, 2016 and is estimated to take four years to complete. Castro expects that its total cost for this project would be $108 million and charges its client $151 million in total. Based on the given actual costs incurred, complete the following table showing the percentage of completion, revenue recognized and gross profit for each year. Assume the company uses the percentage-of-completion method for revenue recognition. Do not enter dollar signs or commas in the input boxes. Round all numbers to 1 decimal place. Costs Revenue Percentage of Completion Year Gross Profit* Incurred* Recognized* 2016 $12.96 % $ 2017 $28.08 % 2018 $36.72 2019 $30.24 Total $108.00 % *The numbers are in million dollars. %24 %24 %24 %24 %24 %24 %24 %24
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