Assume that Sunland Construction Company has a non-cancellable contract to construct a $4,520,000 bridge at an estimated cost of $4,068,000. 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 "$2,928,960+ $1,647,540 $1,017,000 The revised estimates for the bridge contract are as follows. 3,051,000 968,000 817,000 2024 $2,928,960 1,647,540 2,418,000 1,897,000 4,068,000 $452,000 2025 $4,576,500 1.134,000 2023 Original Estimates 2024 Revised Estimates $4,520,000 $4,520,000 4,576,500 0 1,806,000 $(56,500) Under the percentage-of-completion method, how would Sunland record the long-term contract revenues, expenses, and losses in 2024. Please show all steps
Assume that Sunland Construction Company has a non-cancellable contract to construct a $4,520,000 bridge at an estimated cost of $4,068,000. 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 "$2,928,960+ $1,647,540 $1,017,000 The revised estimates for the bridge contract are as follows. 3,051,000 968,000 817,000 2024 $2,928,960 1,647,540 2,418,000 1,897,000 4,068,000 $452,000 2025 $4,576,500 1.134,000 2023 Original Estimates 2024 Revised Estimates $4,520,000 $4,520,000 4,576,500 0 1,806,000 $(56,500) Under the percentage-of-completion method, how would Sunland record the long-term contract revenues, expenses, and losses in 2024. Please show all steps
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 26E
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