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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date (3) (b) $256,280 2025 Cross profit recognized in 2025 Your answer is partially correct. Gross profit recognized in 2024 339,720 Gross profit recognized in 2027 270,000 240.000 S 2026 5 $429,120 166,880 555,000 505,000 2027 Using the cost-recovery method, compute the estimated pross pront that would be recognized during each year of the construction period. (If onewer is 0. please enter O. Do not leave any fields blank) $606,000 -0- 902.000 902,000 294000
Transcribed Image Text:Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date (3) (b) $256,280 2025 Cross profit recognized in 2025 Your answer is partially correct. Gross profit recognized in 2024 339,720 Gross profit recognized in 2027 270,000 240.000 S 2026 5 $429,120 166,880 555,000 505,000 2027 Using the cost-recovery method, compute the estimated pross pront that would be recognized during each year of the construction period. (If onewer is 0. please enter O. Do not leave any fields blank) $606,000 -0- 902.000 902,000 294000
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