Ayayai Construction, Inc. experienced the following construction activity in 2021, the firstyear of operations.ContractXYNTotalContractPrice$254,000323,000229,000$806,000BillingsThrough12/31/21$161,000i112,000S229,000Ayayai Construction, Inc.Partial Income StatementFor the Year 2021CashCollectionsThrough12/31/21$148,000108,000192,000CostsIncurredThrough12/31/21$174,000100,000158,000$502,000 $448,000$432,000$308,000Each of the above contracts is with a different customer, and any work remaining atDecember 31, 2021 is expected to be completed in 2022.EstimatedAdditionalCosts toComplete$ 56,000252,000Prepare a partial income statement to indicate how the above contract information wouldbe reported. Ayayai uses the completed-contract method.-0-

An income statement is a financial statement that displays how lucrative your company was within a…

Ayayai Construction, Inc. experienced the following construction activity in 2021, the first year of operations. Contract X Y N Total Billings Contract Through Price 12/31/21 $254,000 $161,000 112,000 323,000 229,000 229,000 Ayayai Construction, Inc. Partial Income Statement For the Year 2021 S Cash Collections Through 12/31/21 S $148,000 108,000 192,000 Costs Incurred Through 12/31/21 $174,000 100,000 158,000 Estimated Additional Costs to Complete $ 56,000 $806,000 $502,000 $448,000 $432,000 $308,000 Each of the above contracts is with a different customer, and any work remaining at December 31, 2021 is expected to be completed in 2022. 252,000 Prepare a partial income statement to indicate how the above contract information would be reported. Ayayai uses the completed-contract method. -0-

Ayayai Construction, Inc. experienced the following construction activity in 2021, the first year of operations. Contract X Y N Total Billings Contract Through Price 12/31/21 $254,000 $161,000 112,000 323,000 229,000 229,000 Ayayai Construction, Inc. Partial Income Statement For the Year 2021 S Cash Collections Through 12/31/21 S $148,000 108,000 192,000 Costs Incurred Through 12/31/21 $174,000 100,000 158,000 Estimated Additional Costs to Complete $ 56,000 $806,000 $502,000 $448,000 $432,000 $308,000 Each of the above contracts is with a different customer, and any work remaining at December 31, 2021 is expected to be completed in 2022. 252,000 Prepare a partial income statement to indicate how the above contract information would be reported. Ayayai uses the completed-contract method. -0-

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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In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to percentage of completion. complete the…
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Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 316,000 $ 1,700,000 Estimated costs to complete as of 12/31 1,264,000 0 Billings during the year 400,000 1,660,000 Cash collections during the year 290,000 1,770,000 Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time.
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In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 3,344,000 $ 3,960,000 $ 1,645,600 Estimated costs to complete as of year-end 5,456,000 1,496,000 0 Billings during the year 2,800,000 4,504,000 2,696,000 Cash collections during the year 2,600,000 4,400,000 3,000,000 Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time.Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries…
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Crane Corporation uses the completed-contract method. At the end of the first year of a $9023000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2021000 O $991000 O $247750 O $275000 O $0 6011000 1811000 1536000 In the first year, Crane should recognize gross profit of Crane Corporation uses the co information is available: Costs to date: Estimated costs to complete Progress billings during the y Cash collected during the yea In the first voor Crano should r Snipping Tool Screenshot copied t Select here to mark
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