*E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a...
*E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $10 million. The following data pertain to the construction period (all figures in thousands).
Instructions
a. Using the percentage-of-completion method, calculate the percent complete for each year of the contract. Round the percentage completion to the nearest whole percentage point.
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*E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a...
E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a...
E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $10 million. The following data pertain to the construction period (all figures in thousands). 2020 2021 2022 Costs for the year $3,825 $4,675 $1,200 Estimated costs to complete 4,675 1,270 –0– Progress billings for the year (non-refundable) 3,500 4,100 2,400 Cash collected...
E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a...
E6.37 (LO 12) (Recognition of Profit on Long-Term Contract) Vaughn Enterprises Ltd. has entered into a contract beginning in February 2020 to build two warehouses for Atlantis Structures Ltd. The contract is a non-cancellable fixed price contract for $10 million. The following data pertain to the construction period (all figures in thousands). 2020 2021 2022 Costs for the year $3,825 $4,675 $1,200 Estimated costs to complete 4,675 1,270 –0– Progress billings for the year (non-refundable) 3,500 4,100 2,400 Cash collected...
Brief Exercise 5-33 Long-term contract; revenue recognition upon completion [LO5-9] A construction company entered into a...
Brief Exercise 5-33 Long-term contract; revenue recognition upon completion [LO5-9] A construction company entered into a fixed-price contract to build an o million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million. ng How much revenue and gross profit or loss will the company recognize in the...
Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] A construction company entered into...
Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] A construction company entered into a fixed-price contract to build an office building for $48 million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million How much revenue and gross profit or loss will the company...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year $ 60 $ 120 $ 70 Estimated costs to complete as of...
Crane Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed price...
Crane Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed price contract for $2.9 million beginning September 1, 2020, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2022. The following data pertain to the construction period. 2020 2021 2022 Costs to date $848,000 $1,871,250 $2,428,000 Estimated costs to complete 1,802,000 623,750 0 Progress billings to date (non-refundable) 890,000 2,378,000 2,900,000 Cash collected to...
7 On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a...
7 On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 0.5 points 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 120...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 S 30 140 $40...
On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball...
On June 15, 2021, Sanderson Construction entered into a
long-term construction contract to build a baseball stadium in
Washington, D.C., for $370 million. The expected completion date is
April 1, 2023, just in time for the 2023 baseball season. Costs
incurred and estimated costs to complete at year-end for the life
of the contract are as follows ($ in millions):
2021
2022
2023
Costs incurred during the year
$
70
$
110
$
80
Estimated costs
to complete as of...
Crane Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed price...
Crane Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed price contract for $2.9 million beginning September 1, 2020, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2022. The following data pertain to the construction period. 2020 2021 2022 Costs to date $848,000 $1,871,250 $2,428,000 Estimated costs to complete 1,802,000 623,750 0 Progress billings to date (non-refundable) 890,000 2,378,000 2,900,000 Cash collected to...
Brief Exercise 5-33 Long-term contract; revenue recognition upon completion [LO5-9] A construction company entered into a fixed-price contract to build an o million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million. ng How much revenue and gross profit or loss will the company recognize in the...
Brief Exercise 6-35 (Algo) Long-term contract; revenue recognition upon completion (LO6-9] A construction company entered into a fixed-price contract to build an office building for $48 million. Construction costs incurred during the first year were $18 million and estimated costs to complete at the end of the year were $27 million. The building was completed during the second year. Construction costs incurred during the second year were $28 million How much revenue and gross profit or loss will the company...
7 On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 0.5 points 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 120...
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $360 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year Estimated costs to complete as of December 31 S 30 140 $40...
On June 15, 2021, Sanderson Construction entered into a
long-term construction contract to build a baseball stadium in
Washington, D.C., for $370 million. The expected completion date is
April 1, 2023, just in time for the 2023 baseball season. Costs
incurred and estimated costs to complete at year-end for the life
of the contract are as follows ($ in millions):
2021
2022
2023
Costs incurred during the year
$
70
$
110
$
80
Estimated costs
to complete as of...
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