Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are: 2021 2022 Costs incurred during the year $3,300,000 $2,750,000 Estimated costs to complete 2,700,000 — Dalton uses the percentage-of-completion method. Instructions (a) How much revenue should be reported for 2021? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2021. (c) Make the entry to record the revenue and gross profit for 2021. (d) How much gross profit should be reported for 2022? Show your computation.
Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are:
2021 2022
Costs incurred during the year $3,300,000 $2,750,000
Estimated costs to complete 2,700,000 —
Dalton uses the percentage-of-completion method.
Instructions
(a) How much revenue should be reported for 2021? Show your computation.
(b) Make the entry to record progress billings of $4,100,000 during 2021.
(c) Make the entry to record the revenue and gross profit for 2021.
(d) How much gross profit should be reported for 2022? Show your computation.
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