Heston Preskell, Inc., a commercial contractor, sig for $808,000 to build an office building for the...

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Heston Preskell, Inc., a commercial contractor, sig for $808,000 to build an office building for the YMCA. Question 1. Heston Preskell, Inc., a commercial contractor, signed a contract during Year 1 for $808,000 to build an office build- ing for the YMCA. Heston Preskell completed 30% of the work during Year 1 and the remaining 70% during Year 2. The cost of acquired production materials during Year 1 by Heston Preskell was $195,000 and an additional $330,000 during Year 2. Heston Preskell uses the percentage of completion method of revenue recognition. Heston Preskell billed the YMCA $225,000 in Year 1 and the final $580,000 in Year 2. The YMCA paid $210,000 in Year 1, $440,000 in Year 2, and the balance in Year 3. Calculate the following amounts for the year ending December 31, Year 1 Accounts receivable $ Production-in-progress $ Revenue recognized $ Gross profit $ Question 2 WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows: Year 2 Year 3 Heston Preskell, Inc., a commercial contractor, sig for $808,000 to build an office building for the YMCA. Question 1. Heston Preskell, Inc., a commercial contractor, signed a contract during Year 1 for $808,000 to build an office build- ing for the YMCA. Heston Preskell completed 30% of the work during Year 1 and the remaining 70% during Year 2. The cost of acquired production materials during Year 1 by Heston Preskell was $195,000 and an additional $330,000 during Year 2. Heston Preskell uses the percentage of completion method of revenue recognition. Heston Preskell billed the YMCA $225,000 in Year 1 and the final $580,000 in Year 2. The YMCA paid $210,000 in Year 1, $440,000 in Year 2, and the balance in Year 3. Calculate the following amounts for the year ending December 31, Year 1 Accounts receivable $ Production-in-progress $ Revenue recognized $ Gross profit $ Question 2 WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows: Year 2 Year 3

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