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Sheffield Construction Company has entered into a contract beginning January 1, 2012, to build a parking complex. It has been
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  • Requirement [a]

2017

2018

2019

Gross Profits (Loss)

$           147,980.00

$             69,460.00

$                76,560.00

--Working

Working

2017

2018

2019

A

Contract Price

$           902,000.00

$          902,000.00

$              902,000.00

B

Cost Incurred to Date

$           294,000.00

$          432,000.00

$              608,000.00

C

Estimated cost yet to be incurred to complete the contract

$           306,000.00

$          168,000.00

$                                -  

D = B+C

Total Cost

$           600,000.00

$          600,000.00

$              608,000.00

E = (B/D) x 100

% of Completion

49.00%

72.00%

100.00%

F = A x E

Revenue to date

$           441,980.00

$          649,440.00

$              902,000.00

G

Revenue of Previous year

$                            -  

$          441,980.00

$              649,440.00

H = F - G

Net Revenue this year

$           441,980.00

$          207,460.00

$              252,560.00

I (=B)

Cost to date

$           294,000.00

$          432,000.00

$              608,000.00

J

Cost to date of previous year

$                            -  

$          294,000.00

$              432,000.00

K = I - J

Net Cost for the year

$           294,000.00

$          138,000.00

$              176,000.00

L = H - K

Gross Profits

$           147,980.00

$             69,460.00

$                76,560.00

  • Requirement [b]

Gross Profit recognised in:
2017 = $ 0
2018 = $ 0
2019 = 902000 – 608000 = $ 294,000

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