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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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ayayai 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 $255,420 2020 Gross profit recognized in 2021 338,580 Gross profit recognized in 2022 271,000 241,000 Gross profit recognized in 2020. $ 2021 $433,620 $ 160,380 547,000 497,000 2022 $604,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is O, please enter O. Do not leave any fields blank.) -0- 901,000 901,000
Transcribed Image Text:Ayayai 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 $255,420 2020 Gross profit recognized in 2021 338,580 Gross profit recognized in 2022 271,000 241,000 Gross profit recognized in 2020. $ 2021 $433,620 $ 160,380 547,000 497,000 2022 $604,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is O, please enter O. Do not leave any fields blank.) -0- 901,000 901,000
(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter O. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross profit recognized in 2022 $ $ (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter O. Do not leave any fields blank) Gross profit recognized in 2020 Gross profit recognized in 2021 Gross profit recognized in 2022 $ $ $
Transcribed Image Text:(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter O. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross profit recognized in 2022 $ $ (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter O. Do not leave any fields blank) Gross profit recognized in 2020 Gross profit recognized in 2021 Gross profit recognized in 2022 $ $ $
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