Question: Pharoah Enterprises Ltd . has entered into a contract beginning in February 2 0 2 3 to build two warehouses for Coronado Structures Ltd .
Pharoah Enterprises Ltd has entered into a contract beginning in February to build two warehouses for Coronado Structures Ltd The contract is a noncancellable fixedprice contract for $ million. The following data pertain to the construction period all figures in thousands
tableCosts for the year,$Estimated costs to complete,Progress billings for the year nonrefundableCash collected for the year,
The construction industry has experienced significant expansion, making construction materials and labour more costly than originally estimated. Pharoah finds it extremely difficult to estimate the costs to complete construction and therefore difficult to estimate the percentage complete. It must account for the construction project using the zeroprofit method.
a
Calculate the amount of the gross profit to be recognized each year of the contract. Do not leave any answer field blank. Enter for amounts. Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
tableGross profit loss$$$
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