Dalton Construction Co

question 104

Essay

Dalton Construction Co. contracted to build a bridge for $8,000,000. Construction began in 2014 and was completed in 2015. Data relating to the construction are: Dalton uses the percentage-of-completion method.
Instructions
(a) How much revenue should be reported for 2014? Show your computation.
(b) Make the entry to record progress billings of $3,300,000 during 2014.
(c) Make the entry to record the revenue and gross profit for 2014.(d) How much gross profit should be reported for 2015? Show your computation.

---

Definitions:

Income Distribution

The manner in which a nation’s total earnings are divided among its population, affecting economic equality.

Self-Interest

The motivation driving individuals to pursue their own advantages or benefits, often used in economic contexts to explain rational behavior.

Command Economies

Economic systems where the government or a central authority makes all decisions regarding production and distribution of goods and services.

Success Indicator

A measurable value or metric that demonstrates the effectiveness, achievement, or progress toward a specific goal or objective.