Based on the information in this table I need to calculate answers for all with a question mark. Show all calculations. Thanks. Lenny s Construct has contracted to build a building over a period of

Based on the information in this table I need to calculate answers for all with a question mark. Show all calculations. Thanks.

Lenny’s Construct has contracted to build a building over a period of 4 years for \$3,000,000. Information relating to the performance of the contract is summarized as follows:

2007 2008 2009 2010

Construct cost incurred during the year \$300,000 \$1,100,000 \$ 863,000 \$837,000

Estimated costs to complete 2,200,000 1,400,000 837,000 —–

Billings during the year 280,000 870,000 1,030,000 820,000

Collections during the year 270,000 875,000 1,010,000 845,000

A. Compute the profit or loss for each year of the contract under the percentage-of-completion method. Enter losses as a negative number. If an answer is zero, put in zero.

Lenny’s Construct

Profit/Loss Statement

2007-2010

2007 2008 2009 2010

Gross Profit/Loss \$60,000 ? ? ? ?

B. Prepare the relevant sections of the income statement for each year under the percentage-of-completion method.

Lenny’s Construct

Income Statement Partial

For the years ended 2007-2010

2007 2008 2009 2010

Construction Revenue \$360000 ? ? ?

Construction Expense \$300000 \$1100000 ? ?

Gross Profit/Loss \$ 60000 ? (200,000) ?