In 2020, Pop Construction Corp. began work on a contract for $ 3,700,000. Other details follow:
Question:
In 2020, Pop Construction Corp. began work on a contract for $ 3,700,000. Other details follow:
2020 | |
Costs incurred during the year.................................................................... | $ 1,800,000 |
Estimated costs to complete as of December 31................................... | 1,200,000 |
Billings during the year................................................................................. | 1,650,000 |
Collections during the year......................................................................... | 975,000 |
Pop uses the percentage-of-completion method. For calendar 2020, Pop should report gross profit of?
At the end of year 2, the accounting records for a multi-year construction project indicate actual costs incurred to date of $ 3,200,000, and the most recent estimate of additional future costs of $ 7,000,000. Assuming the percentage-of completion method is used, to one decimal, at the end of year 2 the project is?
Mobey Construction Corp. uses the percentage-of-completion method. In 2020, Mobey began work on a contract for $2,475,000 which was completed in 2021. Data on the costs are:
Year Ended December 31 | ||||
2020 | 2021 | |||
Costs incurred | $877,500 | $630,000 | ||
Estimated costs to complete | 585,000 | — |
For the calendar years 2020 and 2021, Mobey should recognize gross profit of?
Punk Construction Corp. has consistently used the percentage-of-completion method. In 2017, Punk started work on a $7,000,000 construction contract that was completed in 2018. The following information was taken from Cymbal's 2017 accounting records:
Billings to date......................................... $2,200,000
Costs incurred......................................... 2,100,000
Collections to date................................. 1,400,000
Estimated costs to complete................ 4,200,000
Under the earnings approach, what amount of gross profit should Cymbal recognize in 2017 on this contract?
Manson Construction Corp. has consistently used the percentage-of-completion method. In 2020, Manson started work on a $ 10,500,000 construction contract that was completed in 2021. The following information was taken from Manson's 2020 accounting records:
Billings to date.................................................... $ 3,300,000
Costs incurred..................................................... 3,150,000
Collections to date............................................. 2,100,000
Estimated costs to complete............................ 6,300,000
Under the earnings approach, what amount of gross profit should Manson recognize in 2020 on this contract?
Bluegrass Builders Ltd. Is using the percentage-of-completion method for a $ 2,010,000 contract that will take two years to complete. Data at December 31, 2020, the end of the first year, are
Costs incurred to date............................................................ $ 925,000
Estimated total costs ............................. 2,025,000
Billings to date......................................................................... 850,000
Collections to date.................................................................. 700,000
The gross profit or loss that should be recognized for 2020 is?
Manson Construction Corp. has consistently used the percentage-of-completion method. In 2020, Manson started work on a $10,500,000 construction contract that was completed in 2021.
The following information was taken from Manson's 2020 accounting records:
Billings to date $3,300,000
Costs incurred 3,150,000
Collections to date 2,100,000
Estimated costs to complete 6,300,000
What is the amount of revenue that will be recorded in 2020?
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy