Brady Construction Company contracted to build an apartment complex for a price of $6,000,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 $ 1,600 1,600 1,600 $ 1,200 2,800 2,400 1,200 2,000 2,800 Situation 1 2 3 4 5 6 600 600 600 2025 $ 2,430 1,200 2,430 3,100 3,100 3,100 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,630 $ 1,200 3,630 2,800 3,630 2,300 4,200 925 2,300 2,600 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. 2024 $ 235,564 235,564 235,564 150,000 150,000 (200,000) 4,200 5,600 Revenue Recognized Over Time 2025 > Answer is complete but not entirely correct. Gross Profit (Loss) Recognized 2026 $ 357,762 $ 176,673 (35,564) ✔ 200,000 (716,063) X (100,000) 950,000 (150,000)✓ (145,000) X 0✓ Revenue Recognized Upon Completion 2024 2026 0✓ 0 0 0 0 300,000 (100,000) X (200,000) 2025 0 0✓ (330,000)✓ 0 0 (100,000) $ 770,000 400,000 (100,000) 1,100,000 300,000 (200,000)
Brady Construction Company contracted to build an apartment complex for a price of $6,000,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 $ 1,600 1,600 1,600 $ 1,200 2,800 2,400 1,200 2,000 2,800 Situation 1 2 3 4 5 6 600 600 600 2025 $ 2,430 1,200 2,430 3,100 3,100 3,100 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,630 $ 1,200 3,630 2,800 3,630 2,300 4,200 925 2,300 2,600 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. 2024 $ 235,564 235,564 235,564 150,000 150,000 (200,000) 4,200 5,600 Revenue Recognized Over Time 2025 > Answer is complete but not entirely correct. Gross Profit (Loss) Recognized 2026 $ 357,762 $ 176,673 (35,564) ✔ 200,000 (716,063) X (100,000) 950,000 (150,000)✓ (145,000) X 0✓ Revenue Recognized Upon Completion 2024 2026 0✓ 0 0 0 0 300,000 (100,000) X (200,000) 2025 0 0✓ (330,000)✓ 0 0 (100,000) $ 770,000 400,000 (100,000) 1,100,000 300,000 (200,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6b
Transcribed Image Text:Brady Construction Company contracted to build an apartment complex for a price of $6,000,000. Construction began in 2024 and
was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the
project. All costs are stated in thousands of dollars.
Situation
1
2
3
4
5
6
Costs Incurred during Year
2024
2026
$ 1,600
1,600
1,600
$ 1,200
2,800
2,400
1,200
2,000
2,800
Situation
1
2
3
4
5
6
600
600
600
2025
$ 2,430
1,200
2,430
3,100
3,100
3,100
Estimated Costs to Complete
(As of the End of the Year)
2024
2025
2026
$ 3,630 $ 1,200
3,630
2,800
3,630
2,300
4,200
925
2,300
2,600
Required:
Complete the following table.
Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400
thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be
indicated by a minus sign.
2024
$ 235,564
235,564
235,564
150,000
150,000
(200,000)
4,200
5,600
Revenue Recognized Over Time
2025
> Answer is complete but not entirely correct.
Gross Profit (Loss) Recognized
2026
$ 357,762 $ 176,673
(35,564) ✔
200,000
(716,063) X
(100,000)
950,000
(150,000)✓
(145,000) X
0✓
Revenue Recognized Upon Completion
2024
2026
0✓
0
0
0
0
300,000
(100,000) X (200,000)
2025
0
0✓
(330,000)✓
0
0
(100,000)
$
770,000
400,000
(100,000)
1,100,000
300,000
(200,000)
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