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. Percentage of Completion Revenue Recognized* Costs Year Gross Profit* Incurred* 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 %24 %24

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. Percentage of Completion Revenue Recognized* Costs Year Gross Profit* Incurred* 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 %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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