On February 1,2007, Nance Contractors agreed to construct a building at a

On February 1,2007, Nance Contractors agreed to construct a building at a contract price of $6,000,000. Nance estimated total construction costs would be $4,000,000 and the project would be finished in 2009. Information relating to the costs and billings for this contract is as follows: 2007 2008 2009 Total costs incurred to date $1,500,000 $2,640,000 $4,600,000 Estimated costs to complete 2,500,000 1,760,000 -0- Customer billings to date 2,200,000 4,000,000 5,600,000 Collections to date 2,000,000 3,500,000 5,500,000 Instructions Fill in the correct amounts on the following schedule. For percentage-of-completionaccounting and for completed-contract accounting, show the gross profit that should berecorded for 2007. Percentage-of-Completion Completed-Contract Gross Profit Gross Profit 2007 _________________ 2007 __________________ 2008 _____ 2008 __________________ 2009 _________________ 2009___________________

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