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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
E18-2 Percentage-of-Completion Method In 2007 Tarlo Company agrees to construct a highway for Brice County over a three-year period (2007 through 2009). The contract price is $1,200,000 and the construction costs (both actual and esti- mated) total $705,000 for the three years. The percentage completed at the end of each year is as follows: 2007, 20%; 2008, 75%;Â 2009, 100%.
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1.     Prepare a schedule showing the amount of gross profit that Tarlo Company recognizes each year using the percentage-of- completion method.
2.     Prepare a schedule showing the amount of gross profit that Tarlo Company recognizes each year using the completed- contract method.
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