Please do not give solution in image format thanku Ayayai Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has beenestimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing companyat $901,000. The following data pertain to the construction period.Costs to dateEstimated costs to completeProgress billings to dateCash collected to date$255,4202020Gross profit recognized in 2021338,580Gross profit recognized in 2022271,000241,000Gross profit recognized in 2020. $2021$433,620$160,380547,000497,0002022$604,000(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of theconstruction period. (If answer is O, please enter O. Do not leave any fields blank.)-0-901,000901,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of theconstruction period. (If answer is 0, please enter O. Do not leave any fields blank.)Gross profit recognized in 2020 $Gross profit recognized in 2021Gross profit recognized in 2022 $$(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of theconstruction period. (If answer is 0, please enter O. Do not leave any fields blank)Gross profit recognized in 2020Gross profit recognized in 2021Gross profit recognized in 2022$$$

The percentage of completion method recognizes the gross profit on the basis of percentage of the…

Avayal Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $901,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2020 $255,420 338,580 271,000 241,000 Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross proft recognized in 2022 2021 $433,620 $ 160,380 547,000 497,000 2022 $604,000 -0 (a) Using the percentage of completion method, compute the estimated gross pront that would be recognized during each year of the construction period. If answer is O, please enter O. Do not leave any fields blank) 901,000 901.000

Avayal Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $901,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2020 $255,420 338,580 271,000 241,000 Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross proft recognized in 2022 2021 $433,620 $ 160,380 547,000 497,000 2022 $604,000 -0 (a) Using the percentage of completion method, compute the estimated gross pront that would be recognized during each year of the construction period. If answer is O, please enter O. Do not leave any fields blank) 901,000 901.000

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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