Question

Teal Construction Company began operations on January 1, 2017. During the year, Teal Construc t ed to complete the total cost of 1,500,000. The total contract price for construction of the days cost to complete the correct is $4,264 40 Land Corp was bed and paid of the contract price with LundstCorp to construct a minut e tot Acthat time. Talestined that it would take 5 years 1000 During the war, Tattored $1.1325 in construction costs related to the construction project. The estimated Prepare schedules to compute the amount of cross proto berc for the year de December 31, 2017, and the amount to be shown as costs recente profit in excess of lines of blings in excess of costs and regled profit December 31, 2017, of the following methods ter negative amounts her angew ending the best these tw o p e w nych ak) Gal Contact method Gross Pro Records Computation of Bilingo Uncompleted Contract in Excess of Podcasts under completed Contact Method Come of Greas Ponta De Here

Answer 1

Please find below table useful to compute desired results: -

А 4540000 5963000 1133580 4264420 0.26 1 Particulars Given 2 Total Cost 3 Contract Price 4 Construction cost 5 Estimated Cost 6 %age billed and paid 7 8 Completed Contract Method 9 Gross Profit to be recognizes 10 Construction Costs incurred during the year 11 Partial Billings on Contract 12 Billings on uncompleted contract in excess of related cost 13 Percentage of Completion Method 15 Contract Price 16 Estimated Total cost 17 Estimated Total Gross Profit from Contract 18 Percentage of Completion 19 Gross profit to be recognized during the year NIL Project is not completed =B4 =B3*B6 =B10-B11 | 14 =B3 =B4+B5 =B15-B16 =B4/B16 =B17*B18

End results would be as follows: -

Particulars Given 1 2 3 4 5 6 Total Cost Contract Price Construction cost Estimated Cost %age billed and paid 4.540.000 5.963.000 1,133,580 4,264,420 26% Project is not completed 8 Completed Contract Method 9 Gross Profit to be recognizes 10 Construction Costs incurred during the year 11 Partial Billings on Contract 12 Billings on uncompleted contract in excess of related cost NIL 1.133.580 1,550,380 (416,800) 13 14 Percentage of Completion Method 15 Contract Price 16 Estimated Total cost 17 Estimated Total Gross Profit from Contract 18 Percentage of Completion 19 Gross profit to be recognized during the year 5,963,000 5.398,000 565,000 21% 118,650