ACCOUNTS PROBLEM

Requirement 1

     ($ in millions)                                                           2011                   2012                      2013

   Contract price                                                         $340                     340                        340

   Actual costs to date                                                   $70                     150                        200

   Estimated costs to complete                                    $150                      90                           0

   Total estimated costs                                               $220                    240                        200

   Estimated gross profit (actual in 2013)     $ 120       100                     140

         Gross profit (loss) recognition:

         2011:                      $

                                             =

                                        $

         2012:                       

                                             = 

        2013:        

Requirement 2

            2011:

  2012:  

  2013:  

Requirement 3

Exercise 5-10 (concluded)

Requirement 4

2011:

Revenue:                     $

Cost:                            $

Gross profit:                $

2012:

Revenue:                    

Cost:                           

Gross profit:    $ 

2013:

Revenue:                    

Cost:                             

Gross profit:    $

Requirement 5

         2012:                      $

                                             =

                                        $