Question


A construction company entered into a fixed-price contract to build an office building for $30 million. Construction costs in
0 1
Add a comment Improve this question Transcribed image text
Answer #1

If it is helpful, please rate the answer and if any doubt arises let me know

Assets:
Accounts receivables = $           8,000,000
Costs plus profit in excess of billings = $           1,000,000
Workings:
Amount billed = $       1,10,00,000
Less: Amount collected = $         -30,00,000
Accounts receivables = $           80,00,000
Total Revenue = $       3,00,00,000
Less: Total Estimated cost = $      -2,50,00,000
Total Estimated Profit = $           50,00,000
Percentage of completion in first year ($10 million / $25 million) = 40%
Profit recognized in first year ($50 million X 40%) = $           20,00,000
Cost plus profit ($10 million + $2 million) = $       1,20,00,000
Less: Amount billed = $       1,10,00,000
Cost plus profit in excess of billings = $           10,00,000
Add a comment
Answer #2

I actually hate people that put 2 zeros in the middle comma set. Fucking die honestly, that is standard literally nowhere


source: Sane human beings
answered by: Gabe
Add a comment
Know the answer?
Add Answer to:
A construction company entered into a fixed-price contract to build an office building for $30 million....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A construction company entered into a fixed price contract to build an office building for $44...

    A construction company entered into a fixed price contract to build an office building for $44 million. Construction costs incurred during the first year were $14 million and estimated costs to complete at the end of the year were $21 million. During the first year the company billed its customer $16 million, of which $10 million was collected before year-end. What would appear in the year-end balance sheet related to this contract using the percentage-of-completion method? (Enter your answers in...

  • A construction company entered into a fixed-price contract to build an office building for $20 million....

    A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The building was completed during the second year. Construction costs incurred during the second year were $10 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue...

  • A construction company entered into a fixed-price contract to build an office building for $44 million....

    A construction company entered into a fixed-price contract to build an office building for $44 million. Construction costs incurred during the first year were $14 million and estimated costs to complete at the end of the year were $21 million. The building was completed during the second year. Construction costs incurred during the second year were $22 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue...

  • A construction company entered into a fixed price contract to build an office building for $16...

    A construction company entered into a fixed price contract to build an office building for $16 milion. Construction costs incurred during the first year were $3 million and estimated costs to complete at the end of the year were $7 million. The company recognizes revenue over time according to percentage of completion How much revenue and gross profit or loss will appear in the company's income statement in the first year of the contract? (Enter your answer in whole dollars.)...

  • A construction company entered into a fixed-price contract to build an office building for $12 million....

    A construction company entered into a fixed-price contract to build an office building for $12 million. Construction costs incurred during the first year were $4 million and estimated costs to complete at the end of the year were $6 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company's income statement in the first year of the contract? (Enter your answer in whole dollars.) Revenue

  • A construction company entered into a fixed-price contract to build an office building for $46 million....

    A construction company entered into a fixed-price contract to build an office building for $46 million. Construction costs incurred during the first year were $12 million and estimated costs to complete at the end of the year were $28 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company's income statement in the first year of the contract? (Enter your answer in whole dollars.) Revenue

  • A construction company entered into a fixed price contract to build an office building for $46...

    A construction company entered into a fixed price contract to build an office building for $46 million. Construction costs incurred during the first year were $12 million and estimated costs to complete at the end of the year were $28 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company's income statement in the first year of the contract? (Enter your answer in whole dollars.)...

  • 1) A construction company entered into a fixed-price contract to build an office building for $20...

    1) A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The building was completed during the second year. Construction costs incurred during the second year were $10 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes...

  • A construction company entered into a fixed-price contract to build an office building for $48 million....

    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 recognize in the first and second year if it recognizes revenue...

  • A construction company entered into a fixed-price contract to build an office building for $10 million....

    A construction company entered into a fixed-price contract to build an office building for $10 million. Construction costs incurred during the first year were $2 million and estimated costs to complete at the end of the year were $3 million. The building was completed during the second year. Construction costs incurred during the second year were $4 million. How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT