Question: Can someone PLEASE help me! I cannot get these answers right. Problem 18-11 Your answer is partially correct. Try again. On July 1, 2020, Shamrock
Can someone PLEASE help me! I cannot get these answers right.



Problem 18-11 Your answer is partially correct. Try again. On July 1, 2020, Shamrock Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Shamrock estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022. At At At 12/31/20 12/31/21 12/31/22 Contract costs incurred to date $266,400 $1,185,900 $2,109,700 Estimated costs to complete the contract 1,213,600 824,100 -0- Billings to Gumbel 300,000 1,100,000 1,850,000 (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2020 Costs to date (12/31/20) 266400 Estimated Costs to Complete 1213600 Estimated Total Costs 1480000 18 % Percent Complete [Revenue Recognized 342000 Costs Incurred (266400) Profit / (Loss) Recognized in 2020 75600 2021 Costs to date (12/31/21) 1185900 Estimated Costs to Complete 824100 Estimated Total Costs 2010000 Contract Price - 1900000 Total Profit/Loss 110000 Total Profit/Loss 110000 Gross Profit Recognized in 2020 -75600 34400 Profit / (Loss) Recognized in 2021 v 2022 Costs to date (12/31/22) 2109700 Estimated Costs to Complete 0 2109700 X Contract Price -1900000 Total Profit/Loss 209700 Total Profit/Loss 209700 X Profit / (Loss) Recognized in 2021 v 34400 X X Profit / (Loss) Recognized in 2020 v 75600 -110000 Profit / (Loss) Recognized in 2022 V 99100 (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2021 Contract Price 1900000 Estimated Total Costs x Profit / (Loss) Recognized in 2021 2022 Contract Price 1900000 Costs Incurred 2109700 Total Profit / (Loss) on Contract (209700) Profit / (Loss) Recognized in 2021 v Profit / (Loss) Recognized in 2022
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
