Question

In 2015 The Big Boss Construction Company, started a 3 year project at a fixed contract price of $22,000,000. The estimated construction costs were $15,500,000. The project was completed on time during the 2917 year. The following information is available for the three year period of the construction project.

  2015    2016       2017

Costs Incurred to Date $6,188,000 $12,360,000 $15,875,000

Estimated Costs to Complete 9,282,000    3,090,000        --

Billings to Date 6,400,000   18,890,000   22,000,000

Collections to Date 5,100,000   17,110,000   21,630,000

For each of the three years of 2015, 2016, and 2017:

a. Prepare the Income Statement section for Big Boss Construction reporting percentage of completion information.  

b. Prepare the Balance Sheet section for Big Boss Constriction reporting percentage of completion information.

Answer 1

Answer
a) INCOME STATEMENT SECTION
Particulars	Year 2015(fig in$)	Year 2016(fig in$)	Year 2017(fig in$)
Sales	88,00,000	1,76,00,000	2,20,00,000
Less : Cost of goods sold	61,88,000	1,23,60,000	1,58,75,000
Gross profit	26,12,000	52,40,000	61,25,000
b. BALANCE SHEET":
Current liabilities
CIP
lESS: bILLINGS ON