Simpson Construction Entered into a Contract to Construct a Floating

question 34

Essay

Simpson Construction entered into a contract to construct a floating bridge across a lake.The contract price for the bridge is $7,500,000.During 2012,costs of $1,800,000 were incurred representing 30% of total expected costs.
Prepare the necessary entries for 2014 to recognize gross profit for the year assuming the firm uses the
(1)completed-contract method.
(2)percentage-of-completion method.

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Definitions:

Stressful Situation

Any event or scenario that causes a significant amount of stress, challenging an individual's ability to cope.

Parasympathetic

Pertaining to the part of the autonomic nervous system responsible for controlling bodily functions when at rest, such as slowing the heart rate and stimulating digestive activities.

Aroused

A state of being awake and reactive to stimuli; can also refer to a heightened state of physical or emotional excitement.

Central Nervous

Refers to the central nervous system, which consists of the brain and spinal cord, serving as the primary processing center for nervous system functions.