The following info relates to pell companys construction, Ask an Expert

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The following info relates to Pell Company's construction jobswhich commenced during 2008.

	Project1	Project2
ContactPrice	420,000	300,000
Costs incurredduring the2008	240,000	280,000
Estimated coststo complete	120,000	40,000
Billed tocustomers during 2008	150,000	270,000
Received fromcustomers during 2008	90,000	250,000

1. If Pell used the completed contract method, what amount of grossprofit or loss would it report in its 2008 income statement?

2. If Pell used the percentage of completion method, what amount ofgross profit or loss would it report in its 2008 incomestatement?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9796849

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