Homework Answers
| Year 1 | Year 2 | Year 3 | |
| Costs to date (A) | 1,650,000.00 | 4,130,000.00 | 6,000,000.00 |
| Total estimated costs (B) | 5,500,000.00 | 5,900,000.00 | 6,000,000.00 |
| % of completion (A/B) | 30.00% | 70.00% | 100.00% |
Year 1
Contract Cost Dr 16,50,000
To Cash 16,50,000
(Being contract exp incurred)
Contractee Dr 13,20,000
To Contract Revenue 13,20,000
(Being contract revenue booked)
Bank Dr 12,10,000
To Contractee 12,10,000
(Being amount received from contractee)
Year 2
Contract Cost Dr 24,80,000
To Cash 24,80,000
(Being contract exp incurred)
Contractee Dr 19,80,000
To Contract Revenue 19,80,000
(Being contract revenue booked)
Bank Dr 19,25,000
To Contractee 19,25,000
(Being amount received from contractee)
Year 3
Contract Cost Dr 18,70,000
To Cash 18,70,000
(Being contract exp incurred)
Contractee Dr 33,00,000
To Contract Revenue 33,00,000
(Being contract revenue booked)
Bank Dr 31,90,000
To Contractee 31,90,000
(Being amount received from contractee)
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Percentage of Completion and Completed Contact Supplement 01- Overall Profit Year 6,000,000 Costs to Date Estimated...
Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building...
Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building at a contract price of $5,400,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2014. Information relating to the costs and billings for this contract is as follows: 2014 2012 $1,500,000 2,500,000 2,200,000 2,000,000 2013 $4,600,000 $2,640,000 1,760,000 4,000,000 3,500,000 Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date -0-...
Sad Construction Company uses the percentage-of-completion method when total con- struction costs can be estimated. Sad...
Sad Construction Company uses the percentage-of-completion method when total con- struction costs can be estimated. Sad is building an office building for Porter Company for $10,000,000 with the following details: 12/31/2004 12/31/2005 12/31/2006 Costs incurred to date $2,000,000 $3,500,000 $6,500,000 Estimated costs to complete 6,000,000 4,500,000 1,500,000 Billings to date 6,000,000 8,000,000 10,000,000 Collections to date 3,000,000 5,500,000 10,000,000 Required: 1. Prepare all journal entries for 2004 that Sad should make for this job. 2. Prepare all journal entries for...
Question 3: Percentage of Completion Method (12 marks) On January 1, 2017, Eagle Construction Ltd. started...
Question 3: Percentage of Completion Method (12 marks) On January 1, 2017, Eagle Construction Ltd. started a construction project for $4,500,000. Relevant data for 2017 and 2018 are as follows: 2017 2018 Current year construction costs $3,300,000 $ 620,000 Estimated remaining costs to complete 600,000 -0- Current year billings 3,100,000 1,400,000 Current year collections 3,000,000 1,500,000 Required: Calculate the following amounts for each method: Completed Percentage-of Contract Completion 2017 2018 2017 2018 a) Gross Profit $ $ $ ...
show working and steps to complete Example 6-4: Costs incurred during the year Estimated future costs...
show working and steps to complete
Example 6-4: Costs incurred during the year Estimated future costs Customer billings during the year Collections during the year 1998 1999 2000 560,000 840,000 720.000 1,040,000 700.000 300,000 500,000 1.200,000 *240.000 500,000 1,240,000 The contract price is $2 million Prepare journal entries 1. when recognizing revenue under completed contract li. when recognizing revenue over time according to percentage-of-completion Percentage completed: Is there an expected overall loss at the end of any year?
Black Sea Construction Company has a contract to construct a $6,000,000 oil rig at an estimated...
Black Sea Construction Company has a contract to construct a $6,000,000 oil rig at an estimated cost of $5,300,000. The contract is to start in July 2017, and the oil rig is to be completed in October 2019. The following data pertain to the construction period. 2017 2018 2019 Costs to date $1,325,000 $3,720,000 $6,300,000 Estimated costs to complete 3,975,000 2,480,000 — Progress billings during the year 1,200,000 3,200,000 1,600,000 Cash collected during the year 1,000,000 2,340,000 2,660,000 What amount...
Exercise 18-36 Coronado Construction Company uses the percentage-of-completion method of accounting. In 2017, Coronado began work...
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...
Riverbed Construction Company uses the percentage-of-completion method of accounting. In 2017, Riverbed began work under contract...
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...
Percentage of Completion Problem: The Nifty Construction Company entered into a long-term contract in 2013. The...
Percentage of Completion Problem: The Nifty Construction Company entered into a long-term contract in 2013. The contract price was $1,600,000, and the company initially estimated the total cost of the project to be $1,150,000. The following data pertains to the three years that the contract was in process: 2013 2014 2015 $224,000 $936,000 $1,280,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date 896,000 264,000 0 200,000 1,200,000 1,600,00 170,000 1,070,000 1,500000 Using the percentage...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin began work under contract E2-02, which provided for a contract price of 52,195,000. Other details follow 2017 2018 Costs incurred during the year 5695,310 $1,404,000 Estimated costs to complete, as of December 31921,690 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...
show working and steps prepare journal entries for -when recognizing revenue under completed contract. -when recognizing...
show working and steps
prepare journal entries
for
-when recognizing revenue under completed contract.
-when recognizing revenue over time accodibg to percentage
completion.
-is there an overall loss? at the end if the year
sues Example 6-3: Not cummuletive 2012 2014 950,000 Costs incurred to date Expected future costs Customer billings to date Collections to date 280,000 520,000 150,000 120,000 2013 720,000 240,000 400,000 320,000 1,000,000 940,000 The contract price is $1 million. Prepare journal entries i. when recognizing revenue...
Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building at a contract price of $5,400,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2014. Information relating to the costs and billings for this contract is as follows: 2014 2012 $1,500,000 2,500,000 2,200,000 2,000,000 2013 $4,600,000 $2,640,000 1,760,000 4,000,000 3,500,000 Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date -0-...
Sad Construction Company uses the percentage-of-completion method when total con- struction costs can be estimated. Sad is building an office building for Porter Company for $10,000,000 with the following details: 12/31/2004 12/31/2005 12/31/2006 Costs incurred to date $2,000,000 $3,500,000 $6,500,000 Estimated costs to complete 6,000,000 4,500,000 1,500,000 Billings to date 6,000,000 8,000,000 10,000,000 Collections to date 3,000,000 5,500,000 10,000,000 Required: 1. Prepare all journal entries for 2004 that Sad should make for this job. 2. Prepare all journal entries for...
show working and steps to complete
Example 6-4: Costs incurred during the year Estimated future costs Customer billings during the year Collections during the year 1998 1999 2000 560,000 840,000 720.000 1,040,000 700.000 300,000 500,000 1.200,000 *240.000 500,000 1,240,000 The contract price is $2 million Prepare journal entries 1. when recognizing revenue under completed contract li. when recognizing revenue over time according to percentage-of-completion Percentage completed: Is there an expected overall loss at the end of any year?
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...
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...
Percentage of Completion Problem: The Nifty Construction Company entered into a long-term contract in 2013. The contract price was $1,600,000, and the company initially estimated the total cost of the project to be $1,150,000. The following data pertains to the three years that the contract was in process: 2013 2014 2015 $224,000 $936,000 $1,280,000 Costs incurred to date Estimated costs to complete Billings to date Collections to date 896,000 264,000 0 200,000 1,200,000 1,600,00 170,000 1,070,000 1,500000 Using the percentage...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin began work under contract E2-02, which provided for a contract price of 52,195,000. Other details follow 2017 2018 Costs incurred during the year 5695,310 $1,404,000 Estimated costs to complete, as of December 31921,690 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...
show working and steps
prepare journal entries
for
-when recognizing revenue under completed contract.
-when recognizing revenue over time accodibg to percentage
completion.
-is there an overall loss? at the end if the year
sues Example 6-3: Not cummuletive 2012 2014 950,000 Costs incurred to date Expected future costs Customer billings to date Collections to date 280,000 520,000 150,000 120,000 2013 720,000 240,000 400,000 320,000 1,000,000 940,000 The contract price is $1 million. Prepare journal entries i. when recognizing revenue...
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