BC Construction Ltd was the low bidder on a construction project to build a skyscraper for$5,000,000. The project began in 2023 and completed in 2024. Cost and other data arepresented below:20232024Costs incurred during the year$1,200,000$2,300,000Estimated costs to complete$2,000,000$Billings during the year$1,000,000$4,000,000Cash collections during the year$800,000$4,200,000Assume that BC recognizes revenue on this contract upon completion of contract.Required:Compute the amount of gross profit recognized during 2023 and 2024.

Gross Profit for 2023:Step 1. Determine the percentage of completion for 2023:Costs incurred in…

Answered: BC Construction Ltd was the low bidder…

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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Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,810,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 447,000 $ 1,110,000 Estimated costs to complete 1,043,000 0 Billings during the year 405,000 1,405,000 Cash collections during the year 305,000 1,505,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,810,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 447,000 $ 1,110,000 Estimated costs to complete 1,043,000 0 Billings during the year 405,000 1,405,000 Cash collections during the year 305,000 1,505,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,860,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 432,000 $ 1,160,000 Estimated costs to complete 1,008,000 0 Billings during the year 430,000 1,430,000 Cash collections during the year 330,000 1,530,000 Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2023 and 2024. Note: Leave no cells blank - be certain to enter "0" wherever required.
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9 Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,750,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below 2023 2024 cost incurred during the year 469,000 $ 1,050,000 estimated cost to complete 871,000 $ billings during the year 480,000 $ 1,270,000 cash collections during the year 380,000 $ 1,370,000 Year General Journal Debit Credit Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: a. 2023 a. b. Record the entry for costs incurred during the year 2023. Record the entry for billings during the year 2023. b. 2023 c. d. e. f. g. Record the entry for cash collections during the year 2023. Record the entry for revenue from long-term contracts. Record the entry for costs incurred during the year 2024 Record the entry for billings during the year 2024 Record the entry for cash collections during the year 2024 C. 2023 d. 2023 e.…
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete 2023 $ 423,000 987,000 2024 $ 1,190,000 0 Billings during the year 445,000 Cash collections during the year 345,000 1,445,000 1,545,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the entry for costs incurred during the year 2023. Note: Enter debits before credits. Date 2023 General Journal Debit Credit
How much is the Gross Profit/Loss Realized in 2018? Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project: 2017 2018 2019 Costs incurred to date 2160,000 4,500,000 7,520,000 Estimated cost to complete Progress Billings to date Cash Collections for the year 6,840,000 5,500,000 1,880,000 2304,000 4,320,000 7,680,000 1,728,000 3,240,000 5,760,000
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8. How much is the Gross Profit/Loss Realized in 2018? * Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project 2017 2018 2019 Costs inenered to dnte Estimsted cost to complete Progess Billings to dnte Cash Collectiona for the year 2160,000 4,500,000 7,520,000 6840,000 5,500,000 1,690, 000 2,304,000 4,320,000 7,680,000 1,728.000 3,240,000 5,760,000 9. How much is the Gross Profit/Loss Realized in 2019? * Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 10,200,000 10,200,000 9,800,000 8,760,000…
19..Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,760,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below: 2020 2021Costs incurred during the year $399,000 $1,060,000 Estimated costs to complete 931,000 0 Billings during the year 485,000 1,275,000 Cash collections during the year 385,000 1,375,000 Assume that Beavis recognizes revenue on this contract over time according to the percentage of completion. Required:Prepare all journal entries to record costs, billings, collections, and profit recognition. (If no entry is required for a transaction/event, type "No journal entry required" in the first…

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