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6. A construction company decides to take a new job. The estimated income and expenses of...
A construction company decides to take a new job. The estimated income and expenses of this...
A construction company decides to take a new job. The estimated income and expenses of this job are shown in the table below. The company is using Percentage Of Completion (POC) accounting method. The bills received by this company at the different months are shown below. Please determine the following:[40 points 6. The anticipated gross profit and percentage (%) in the table below a. b. The percentage of the project completion at the end of the 1t AND 2ad months...
During 2020, Pharoah Company started a construction job with a contract price of $1,620,000. The job...
During 2020, Pharoah Company started a construction job with a
contract price of $1,620,000. The job was completed in 2022. The
following information is available.
2020
2021
2022
Costs incurred to date
$373,700
$902,000
$1,070,000
Estimated costs to complete
636,300
198,000
–0–
Billings to date
303,000
899,000
1,620,000
Collections to date
273,000
807,000
1,412,000
Compute the amount of gross profit to be recognized each year,
assuming the percentage-of-completion method is used.
Gross profit recognized in 2020
$enter a dollar amountenter...
During 2020, Martinez Company started a construction job with a contract price of $1,600,000. The job...
During 2020, Martinez Company started a construction job with a contract price of $1,600,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $405,900 $830,680 $1,074,000 Estimated costs to complete 584,100 262,320 –0– Billings to date 302,000 898,000 1,600,000 Collections to date 272,000 818,000 1,420,000 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 in...
5. During Year 1, Gates Corp. started a construction job with a total contract price of $4,000,000. The job was com...
5. During Year 1, Gates Corp. started a construction job with a total contract price of $4,000,000. The job was completed on December 15, Year 2. Additional data are as follows: Year 1 Year 2 Actual costs incurred during the year $990,000 $1,200,000 Estimated remaining costs 1,210,000 Billed to customer 1,600,000 2,400,000 Received from customer 1,200,000 2,400,000 A. Prepare the journal entries necessary for Year 1 using the percentage of completion method. B. What amount of gross profit will be...
During 2020, Sunland Company started a construction job with a contract price of $1.590,000. The job...
During 2020, Sunland 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 2021 2022 $410,000 $901,180 $1,067.000 590.000 197,820 -0- 297.000 903,000 1.590,000 271.000 805,000 1.434.000 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...
During 2020, Pronghorn Company started a construction job with a contract price of $1,580,000. The job...
During 2020, Pronghorn Company started a construction job with a contract price of $1,580,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $424,200 $820,500 $1,077,000 Estimated costs to complete 585,800 273,500 –0– Billings to date 297,000 894,000 1,580,000 Collections to date 273,000 816,000 1,419,000 Instructions: Complete a chart analyzing the above information showing revenue, the % of completion every year and the amount of gross profit to be recognized each...
During 2020, Sweet Company started a construction job with a contract price of $1,610,000. The job...
During 2020, Sweet Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $380,000 $847,770 $1,069,000 Estimated costs to complete 620,000 253,230 –0– Billings to date 302,000 896,000 1,610,000 Collections to date 272,000 812,000 1,418,000 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar amount...
alls Corners Construction Limited (BCCL) specializes in the construction of commercial buildings. A typical construction project...
alls Corners Construction Limited (BCCL) specializes in the construction of commercial buildings. A typical construction project lasts between fifteen and twenty-four months. The company uses the percentage-of-completion method of revenue recognition since, given the characteristics of the contractor's business, it is the most appropriate method. Progress toward completion is measured on a cost-to-cost basis. BCCL follows ASPE and has a December 31 year-end. On January 1, 2016, the company began work on a contract and, at the beginning of the...
A construction company is negotiating on a construction project with a three-month duration. On the last...
A construction company is negotiating on a construction project with a three-month duration. On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. Final payment is expected one month after completion of the project and will include the retention. The construction company pays material suppliers in full when they receive payment from the owner. The construction company...
During 2020, Sunland Company started a construction job with a contract price of $1,590,000. The job...
During 2020, Sunland 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 2020 2021 2022 $410,000 $901,180 $1,067,000 590,000 197,820 -0- 297,000 903,000 .590,000 271,000 805,000 1,434,000 Billings to date Collections to date ✓ Your answer is correct Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in...
A construction company decides to take a new job. The estimated income and expenses of this job are shown in the table below. The company is using Percentage Of Completion (POC) accounting method. The bills received by this company at the different months are shown below. Please determine the following:[40 points 6. The anticipated gross profit and percentage (%) in the table below a. b. The percentage of the project completion at the end of the 1t AND 2ad months...
During 2020, Pharoah Company started a construction job with a
contract price of $1,620,000. The job was completed in 2022. The
following information is available.
2020
2021
2022
Costs incurred to date
$373,700
$902,000
$1,070,000
Estimated costs to complete
636,300
198,000
–0–
Billings to date
303,000
899,000
1,620,000
Collections to date
273,000
807,000
1,412,000
Compute the amount of gross profit to be recognized each year,
assuming the percentage-of-completion method is used.
Gross profit recognized in 2020
$enter a dollar amountenter...
5. During Year 1, Gates Corp. started a construction job with a total contract price of $4,000,000. The job was completed on December 15, Year 2. Additional data are as follows: Year 1 Year 2 Actual costs incurred during the year $990,000 $1,200,000 Estimated remaining costs 1,210,000 Billed to customer 1,600,000 2,400,000 Received from customer 1,200,000 2,400,000 A. Prepare the journal entries necessary for Year 1 using the percentage of completion method. B. What amount of gross profit will be...
alls Corners Construction Limited (BCCL) specializes in the construction of commercial buildings. A typical construction project lasts between fifteen and twenty-four months. The company uses the percentage-of-completion method of revenue recognition since, given the characteristics of the contractor's business, it is the most appropriate method. Progress toward completion is measured on a cost-to-cost basis. BCCL follows ASPE and has a December 31 year-end. On January 1, 2016, the company began work on a contract and, at the beginning of the...
A construction company is negotiating on a construction project with a three-month duration. On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. Final payment is expected one month after completion of the project and will include the retention. The construction company pays material suppliers in full when they receive payment from the owner. The construction company...
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