2. On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of
$17,400,000. Marsh estimated total construction costs would be $12,000,000 and the project would
be finished in 2019. Information relating to the costs and billings for this contract is as follows:
(6 points)
2017
2018
2019
Total costs incurred to date
$4,500,000
$7,920,000 $13,800,000
Estimated costs to complete
7,500,000
5,280,000
-0-
Customer billings to date
6,600,000
12,000,000
16,800,000
Collections to date
6,000,000
10,500,000
16,500,000
(a) How much gross profit should be reported for 2017?
(b)
How much gross profit should be reported for 2018?
(c)
Make the journal entry to record the revenue and gross profit for 2018.
Date
Account Titles
Debit
Credit
