Question

brady construction company contracted to build an apartment for a price of $6,000,000.

Brady Construction Company contracted to build an apartment complex for a price of $6,000,000. Construction began in 2021 and was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Estimated Costs to Complete Costs Incurred (As of the End During Year of the Year) Situation 2021 2022 2023 2021 2022 2023 1,600 2,430 1,200 3,630 1,200 - 1,600 1,200 2,800 3,630 2,800 1,600 2,430 2,400 3,630 2,300 600 3,100 1,200 4,200 925 600 3,100 2,000 4,200 2,300 600 3,100 2,800 5,600 2,600 UWN Required: Complete the following table. (Do not round intermediate calculations. Enter answers in dollars. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.) Answer is not complete. Gross Profit (Loss) Recognized Revenue Recognized Over Revenue Recognized Upon Time Complet 2021 2022 2023 Situation 2021 2022 2023

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Brady Construction situation 1 - Revenue Recognized Upon Completion Year 2021 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit (actual in 2023) 6,000,000 1,600,000 3,630,000 5,230,000 Year 2022 $ 6,000,000 $4,030,000 $ 1,200,000 $ 5,230,000 Year 2023 $ 6,000,000 $ 5,230,000 $ $5,230,000 770,000 $ 770,000 $ 770,000 Gross profit (loss) recognized: Year 2021 Percentage Completion Revenue Recognized Gross Profit Recognized $1,600,000/$5,230,000 $6,000,000*30.5927 $1,835,564-$1,600,000 30.5927% $ 1,835,564 $ 235,564 $4,030,000/$5,230,000 $6,000,000*77.0554 Year 2022 Percentage Completion Total Revenue till Year 2022 Less: Recognized earlier Revenue Recognized for Year 2022 Gross Profit Recognized 77.0554% $ 4,623,327 $ (1,835,564) $ 2,787,763 $ 357,763 $2,787,763-$2,430,000 Year 2023 Revenue Recognized Gross Profit Recognized $ 1,376,673 $ 176,673 Situation 1 - Revenue Recognized Upon Completion Gross profit recognized Year Year 2021 Year 2022 Year 2023 Total gross profit 770,000 770,000 Situation 2 - Revenue Recognized Over Time Year 2021 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit (actual in 2023) Year 2022 6,000,000 $ 6,000,000 1,600,000 $2,800,000 3,630,000 $ 2,800,000 5,230,000 $ 5,600,000 Year 2023 $ 6,000,000 $ 5,600,000 $ $ 5,600,000 770,000 $ 400,000 $ 400,000 Gross profit (loss) recognized: Year 2021 Percentage Completion Revenue Recognized Gross Profit Recognized $ $ 30.5927% 1,835,564 235,564

Year 2022 Percentage Completion Total Revenue till Year 2022 Less: Recognized earlier Revenue Recognized for Year 2022 Gross Profit Recognized 50.0000% $ 3,000,000 $ (1,835,564) $ 1,164,436 $ (35,564) Year 2023 Revenue Recognized Gross Profit Recognized $ 3,000,000 $ 200,000 Situation 2 - Revenue Recognized Upon Completion Year Gross profit recognized Year 2021 Year 2022 Year 2023 Total gross profit 400,000 400,000 Situation 3 - Revenue Recognized Over Time Year 2021 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit (actual in 2023) 6,000,000 1,600,000 3,630,000 5,230,000 Year 2022 $ 6,000,000 $ 4,030,000 $ 2,300,000 $ 6,330,000 Year 2023 $ 6,000,000 $ 6,430,000 $ $ 6,430,000 770,000 $ (330,000) $ (430,000) Gross profit (loss) recognized: Year 2021 Percentage Completion Revenue Recognized Gross Profit Recognized 30.5927% $ 1,835,564 $ 235,564 Year 2022 Since overall there is loss of $150,000 Gross Profit Recognized $ (565,564) Year 2023 Since overall there is loss of $250,000 Gross Profit Recognized $ (100,000)

situation 3 - Revenue Recognized Upon Completion Gross profit recognized Year Year 2021 Year 2022 Year 2023 Total gross profit (330,000) (100,000) (430,000) Situation 4 - Revenue Recognized Over Time Year 2021 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit (actual in 2023) 6,000,000 600,000 4,200,000 4,800,000 Year 2022 $ 6,000,000 $ 3,700,000 $ 925,000 $ 4,625,000 Year 2023 $ 6,000,000 $ 4,900,000 $ $ 4,900,000 1,200,000 $1,375,000 $ 1,100,000 Gross profit (loss) recognized: Year 2021 Percentage Completion Revenue Recognized Gross Profit Recognized $ $ 12.5000% 750,000 150,000 Year 2022 Percentage Completion Total Revenue till Year 2022 Less: Recognized earlier Revenue Recognized for Year 2022 Gross Profit Recognized 80.0000% $ 4,800,000 $ (750,000) $ 4,050,000 $ 950,000 Year 2023 Revenue Recognized Gross Profit Recognized $ $ 1,200,000 . situation 4 - Revenue Recognized Upon Completion Gross profit recognized Year Year 2021 Year 2022 Year 2023 Total gross profit 1,100,000 1,100,000 Situation 5 - Revenue Recognized Over Time Year 2021 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit (actual in 2023) Year 2022 6,000,000 $ 6,000,000 600,000 $3,700,000 4,200,000 $ 2,300,000 4,800,000 $ 6,000,000 Year 2023 $ 6,000,000 $5,700,000 $ $5,700,000 $ 1,200,000 $ - $ 300,000 Gross profit (loss) recognized:

Year 2021 Percentage Completion Revenue Recognized Gross Profit Recognized $ $ 12.5000% 750,000 150,000 Year 2022 Gross Profit Recognized $ (150,000) Year 2023 Gross Profit Recognized $ 300,000 Situation 5 - Revenue Recognized Upon Completion Gross profit recognized Year Year 2021 Year 2022 Year 2023 Total gross profit 300,000 300,000 Situation 6 - Revenue Recognized Over Time Year 2021 Contract price Actual costs to date Estimated costs to complete Total estimated costs Estimated gross profit (actual in 2023) 6,000,000 600,000 5,600,000 6,200,000 Year 2022 $ 6,000,000 $ 3,700,000 $ 2,600,000 $ 6,300,000 Year 2023 $ 6,000,000 $ 6,500,000 $ $ 6,500,000 (200,000) $ (300,000) $ (500,000) Gross profit (loss) recognized: Year 2021 Since overall there is loss of $110,000 Gross Profit Recognized $ 200,000) Year 2022 Since overall there is loss of $210,000 Gross Profit Recognized $ (100,000) Year 2023 Since overall there is loss of $320,000 Gross Profit Recognized $ 200,000) situation 6 - Revenue Recognized Upon Completion Year Year 2021 Year 2022 Year 2023 Total gross profit Gross profit recognized (200,000) (100,000) (200,000) (500,000) $ situation Year 2021 WN Percentage Completion Upon Completion Year 2022 Year 2023 Year 2021 Year 2022 Year 2023 235,564 $ 357,763 $ 176,673 $ $ 770,000 235,564 $ (35,564) $ 200,000 $ . . $ 400,000 235,564 $ (565,564) $ (100,000) $ - $ (330,000) $ (100,000) 150,000 $ 950,000 $ - $ 1,100,000 150,000 $ (150,000) $ 300,000 $ - $ 300,000 (200,000) $ (100,000) $ (200,000) $ (200,000) $ (100,000) $ (500,000)