Surplus Constriction Company, Inc., entered into a fixed-price contract with Fairway Associates on July 1, 2018,...

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Surplus Constriction Company, Inc., entered into a fixed-price contract with Fairway Associates on July 1, 2018, to constrict a four-story office building. At that time, Surplus estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is S4,000,000. Surplus concludes that the contract does qualify for revenue recognition over time, The building was completed on December 51, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fairway under the contract were as follows: At 12-31-2018 $ 350,000 At 12-31-2019 S2,500,000 At 12-31-2020 Costs incurred to date $4,250,000 Estimated costs to complete Billings to Fairway, to date 3,150,000 1,700,000 -0- 720,000 2,170,000 3,600,000 Required: Compute gross profit or loss to be recognized in 2018 2019 and 2020 Do not enter S sign or commas in your answer. If the amount is a loss, use a minus sign before the number. • Compute the amount to be shown in the balance sheet at the end of 2018 as either cost in excess of billings or billings in excess of costs. If billings are in excess of costs, indicate the answer with a minus commas in your answer. Will this amount be reported as an asset or a liability? Do not enter S sign or Surplus Constriction Company, Inc., entered into a fixed-price contract with Fairway Associates on July 1, 2018, to constrict a four-story office building. At that time, Surplus estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is S4,000,000. Surplus concludes that the contract does qualify for revenue recognition over time, The building was completed on December 51, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fairway under the contract were as follows: At 12-31-2018 $ 350,000 At 12-31-2019 S2,500,000 At 12-31-2020 Costs incurred to date $4,250,000 Estimated costs to complete Billings to Fairway, to date 3,150,000 1,700,000 -0- 720,000 2,170,000 3,600,000 Required: Compute gross profit or loss to be recognized in 2018 2019 and 2020 Do not enter S sign or commas in your answer. If the amount is a loss, use a minus sign before the number. • Compute the amount to be shown in the balance sheet at the end of 2018 as either cost in excess of billings or billings in excess of costs. If billings are in excess of costs, indicate the answer with a minus commas in your answer. Will this amount be reported as an asset or a liability? Do not enter S sign or

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calculation of gross profit to be recognised Particulars 31122018 ... View the full answer