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Accounting Homework Help

Question 2 During 2014, Antoinette started a construction jobwith a contract price of $2.8 million. The job was completed in2016 and information for the three years of construction is asfollows:

2014 2015 2016

Costs incurred to date $1,230,000 $1,765,000 $1,965,000

Estimated costs to complete 850,000 175,000 –0–

Billings to date 1,000,000 1,880,000 2,800,000

Collections to date 710,000 1,720,000 2,800,000

Calculate the amount of gross profit / (loss) that should berecognized each year under the percentage-of-completion method.(Round percent complete to 2 decimal places, e.g.52.75%. Enter negative amounts using either a negative signpreceding the number e.g. -45 or parentheses e.g.(45).)

Under the earnings approach: