Howard Construction Co. contracted to build a bridge for $3,000,000. Construction began in 2012 and was completed in 2013. Data relating to the construction are:
2012 2013
Costs incurred $990,000 $825,000
Estimated costs to complete 810,000 —
Howard uses the percentage-of-completion method.
Instructions:
(a) How much revenue should be reported for 2012?
(b) Make the entry to record progress billings of $1,000,000 during 2012.
(c) Make the entry to record the revenue and gross profit for 2012.
(d) Show the Balance Sheet Presentation for 2012.