Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of $4.140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. Assume that progress billings are non-refundable. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 $1,035,000 3,105,000 955,000 788,000 2024 $2,980,800 1,676,700 2,443,000 1,801,000 2025 $4,657,500 0 1,202,000 2,011,000
Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of $4.140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. Assume that progress billings are non-refundable. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year 2023 $1,035,000 3,105,000 955,000 788,000 2024 $2,980,800 1,676,700 2,443,000 1,801,000 2025 $4,657,500 0 1,202,000 2,011,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of
$4,140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the
construction period. Assume that progress billings are non-refundable.
Costs to date (12/31)
Estimated costs to complete (12/31)
Progress billings during the year
Cash collected during the year
Contract price
Estimated total cost
Estimated gross profit
Estimated loss
2023
$1,035,000
3,105,000
*$2,980,800+$1,676,700
955,000
788,000
2025
$2,980,800 $4,657,500
1,676,700
2024
The revised estimates for the bridge contract are as follows.
2,443,000
1,801,000
2023 Original Estimates 2024 Revised Estimates
$4,600,000
$4,600,000
4,140,000
4,657.500*
$460,000
1,202,000
2,011,000
0
$(57,500)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F771ce31f-7488-4bd5-b9c6-b862d83ada4d%2F5e93090f-e503-48f4-aff7-6df75432e6cc%2F9beha0s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of
$4,140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the
construction period. Assume that progress billings are non-refundable.
Costs to date (12/31)
Estimated costs to complete (12/31)
Progress billings during the year
Cash collected during the year
Contract price
Estimated total cost
Estimated gross profit
Estimated loss
2023
$1,035,000
3,105,000
*$2,980,800+$1,676,700
955,000
788,000
2025
$2,980,800 $4,657,500
1,676,700
2024
The revised estimates for the bridge contract are as follows.
2,443,000
1,801,000
2023 Original Estimates 2024 Revised Estimates
$4,600,000
$4,600,000
4,140,000
4,657.500*
$460,000
1,202,000
2,011,000
0
$(57,500)
![Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of
$4,140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the
construction period. Assume that progress billings are non-refundable.
Costs to date (12/31)
Estimated costs to complete (12/31)
Progress billings during the year
Cash collected during the year
Contract price
Estimated total cost
Estimated gross profit
Estimated loss
2023
$1,035,000
3,105,000
*$2,980,800+$1,676,700
955,000
788,000
2025
$2,980,800 $4,657,500
1,676,700
2024
The revised estimates for the bridge contract are as follows.
2,443,000
1,801,000
2023 Original Estimates 2024 Revised Estimates
$4,600,000
$4,600,000
4,140,000
4,657.500*
$460,000
1,202,000
2,011,000
0
$(57,500)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F771ce31f-7488-4bd5-b9c6-b862d83ada4d%2F5e93090f-e503-48f4-aff7-6df75432e6cc%2Fzuefgm1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that Ivanhoe Construction Company has a non-cancellable contract to construct a $4,600,000 bridge at an estimated cost of
$4,140,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the
construction period. Assume that progress billings are non-refundable.
Costs to date (12/31)
Estimated costs to complete (12/31)
Progress billings during the year
Cash collected during the year
Contract price
Estimated total cost
Estimated gross profit
Estimated loss
2023
$1,035,000
3,105,000
*$2,980,800+$1,676,700
955,000
788,000
2025
$2,980,800 $4,657,500
1,676,700
2024
The revised estimates for the bridge contract are as follows.
2,443,000
1,801,000
2023 Original Estimates 2024 Revised Estimates
$4,600,000
$4,600,000
4,140,000
4,657.500*
$460,000
1,202,000
2,011,000
0
$(57,500)
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