1.

REQUIRED:
A. Prepare a schedule to determine the amount of income that the company should recognize on
every year
B. What is the construction-in-progress balance as of every year?

2.

A. Prepare a schedule to determine the amount of income/loss that the company should recognize
on every year using PERCENTAGE OF COMPLETION method. What is the excess of
construction in progress over progress billings on December 31, 2020?
B. Prepare a schedule to determine the amount of income/loss that the company should recognize
on every year using COST RECOVERY method. What is the excess of construction in progress
over progress billings on December 31, 2021?
C. Assume that an architect hired by the company made the following estimates of the project’s
percentage of completion at 50%, 90% and 100% at the end of 2020,2021, and 2022, respectively,
what is the realized gross profit for 2021, using percentage of completion method – output measures
as determined by estimates made by the architect?
3.

What is the balance of construction in progress on December 31, 2023?

4.

How much is the realized gross profit in 2022?

5.

What is the balance of Construction in Progress on December 31, 2023?