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Sunland Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1250000 each quarter. The total contract price is $18546000 and Sunland estimates total costs of $17900000. Sunland estimates that the building will take 3 years to complete, and commences construction on January 2, 2018 At December 31, 2019, Sunland Construction estimates that it is 80% complete with the building: however, the estimate of total...
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Please show work for the following question:
Seasons Construction is constructing an office building under
contract for Cannon Company and uses the percentage-of-completion
method. The contract calls for progress billings and payments of
$1,550,000 each quarter. The total contract price is $18,600,000
and Seasons estimates total costs of $17,750,000. Seasons estimates
that the building will take 3 years to complete, and commences
construction on January 2, 2018. At December 31, 2018, Seasons
estimated that it was 30% complete with the...
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Tamarisk Construction Company uses the percentage-of-completion
method of accounting. In 2017, Tamarisk began work under contract
#E2-D2, which provided for a contract price of $2,227,000. Other
details follow:
2017
2018
Cost incurred during the year
$660240
$1422000
Estimated costs to complete, as of December 31
911760
0
Billings to date
425000
2227000
Collections during the year
347000
1523000
What portion of the total contract price would be recognized as
revenue in 2017? In 2018?
Revenue recognized in 2017 $______________
Revenue...
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On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,300,000. During 2021, costs of $2,100,000 were incurred with estimated costs of $4,100,000 yet to be incurred. Billings of $2,600,000 were sent, and cash collected was $2,350,000. In 2022, costs incurred were $2,600,000 with remaining costs estimated to be $3,750,000. 2022 billings were $2,850,000 and $2,575,000 cash was collected. The project was completed in 2023 after additional costs of...
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Riverbed Construction Company uses the percentage-of-completion
method of accounting. In 2017, Riverbed began work under contract
#E2-D2, which provided for a contract price of $2,195,000. Other
details follow:
2017
2018
Costs incurred during the year
$695,310
$1,404,000
Estimated costs to complete, as of December 31
921,690
–0–
Billings to date
426,000
2,195,000
Collections during the year
352,000
1,475,000
What portion of the total contract price would be recognized as
revenue in 2017? In 2018?
Revenue recognized in 2017
$
Revenue...
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n 2016, Long Construction Corporation began construction work
under a three-year contract. The contract price is $1,600,000. Long
recognizes revenue over time according to percentage of completion
for financial reporting purposes. The financial statement
presentation relating to this contract at December 31, 2016, is as
follows: Balance Sheet Accounts receivable (from construction
progress billings) $ 30,000 Construction in progress $ 100,000
Less: Billings on construction contract (94,000 ) Cost and profit
of uncompleted contracts in excess of billings 6,000 Income...
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During 2020, Oriole Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2020 $366,300 623,700 297,000 270,000 2021 $831,440 262,560 894,000 816,000 2022 $1,067,000 -0- 1,590,000 1,417,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $ Gross profit recognized...
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Exercise 18-36 Coronado Construction Company uses the percentage-of-completion method of accounting. In 2017, Coronado began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2017 2018 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 -0- Billings to date 413,000 2,234,000 Collections during the year 351,000 1,530,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in 2017...
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Bob Ltd signs a contract on 1 April 2018 to build an office
building. The construction is scheduled to commence 1 July 2018 and
the estimated date of completion is 30 June 2021. The cost of the
building is estimated to be $155m and the total contract price is
fixed at $180m. The following data relates to the construction
period:
For the year ended 30 June
2019
2020
2021
$’000
$’000
$’000
Costs to date
46,500
108,500
155,000
Estimated Costs...
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Prachce Problem 9 In Year 1, Amber Construction Corporation began construction work under a three-year contract. The contract price is $1,610,000. Long uses the percentage-of-completion method for financial reporting purposes. The financial statement presentation relating to this contract at December 31, year 1, is as follows: Balance Sheet $30,000 Accounts receivable (from construction progress billings) Construction in progress Less: Billings on Construction Contract $100,000 (93,000) 7,000 Cost of uncompleted contracts in excess of billings Income Statement $24,000 Income (before tax)...
Sunland Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1250000 each quarter. The total contract price is $18546000 and Sunland estimates total costs of $17900000. Sunland estimates that the building will take 3 years to complete, and commences construction on January 2, 2018 At December 31, 2019, Sunland Construction estimates that it is 80% complete with the building: however, the estimate of total...
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,300,000. During 2021, costs of $2,100,000 were incurred with estimated costs of $4,100,000 yet to be incurred. Billings of $2,600,000 were sent, and cash collected was $2,350,000. In 2022, costs incurred were $2,600,000 with remaining costs estimated to be $3,750,000. 2022 billings were $2,850,000 and $2,575,000 cash was collected. The project was completed in 2023 after additional costs of...
Riverbed Construction Company uses the percentage-of-completion
method of accounting. In 2017, Riverbed began work under contract
#E2-D2, which provided for a contract price of $2,195,000. Other
details follow:
2017
2018
Costs incurred during the year
$695,310
$1,404,000
Estimated costs to complete, as of December 31
921,690
–0–
Billings to date
426,000
2,195,000
Collections during the year
352,000
1,475,000
What portion of the total contract price would be recognized as
revenue in 2017? In 2018?
Revenue recognized in 2017
$
Revenue...
During 2020, Oriole Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2020 $366,300 623,700 297,000 270,000 2021 $831,440 262,560 894,000 816,000 2022 $1,067,000 -0- 1,590,000 1,417,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $ Gross profit recognized...
Exercise 18-36 Coronado Construction Company uses the percentage-of-completion method of accounting. In 2017, Coronado began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2017 2018 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 -0- Billings to date 413,000 2,234,000 Collections during the year 351,000 1,530,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in 2017...
Prachce Problem 9 In Year 1, Amber Construction Corporation began construction work under a three-year contract. The contract price is $1,610,000. Long uses the percentage-of-completion method for financial reporting purposes. The financial statement presentation relating to this contract at December 31, year 1, is as follows: Balance Sheet $30,000 Accounts receivable (from construction progress billings) Construction in progress Less: Billings on Construction Contract $100,000 (93,000) 7,000 Cost of uncompleted contracts in excess of billings Income Statement $24,000 Income (before tax)...