Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,880,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 426,000 $ 1,180,000 Estimated costs to complete 994,000 0 Billings during the year 440,000 1,440,000 Cash collections during the year 340,000 1,540,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,880,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 426,000 $ 1,180,000 Estimated costs to complete 994,000 0 Billings during the year 440,000 1,440,000 Cash collections during the year 340,000 1,540,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

See similar textbooks

	2023	2024
Costs incurred during the year	$ 426,000	$ 1,180,000
Estimated costs to complete	994,000	0
Billings during the year	440,000	1,440,000
Cash collections during the year	340,000	1,540,000

Required:

Compute the amount of gross profit recognized during 2023 and 2024.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Meaning of percentage of completion

VIEW

Step 2: Calculation of gross profit

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,720,000. 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 Billings during the year 2023 $ 411,000 959,000 2024 $ 1,020,000 e 465,000 1,255,000 Cash collections during the year 365,000 1,355,000 Assume that Beavis recognizes revenue upon completion of the project. 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 Record the entry for costs incurred during the year 2023. Note: Enter debits before credits. Date 2023 General Journal Debit Credit View general journal Record entry Clear entry
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
1
Haresh gujariya
Dineshbhai
Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred during Year Estimated Costs to Complete (As of the End of the Year) 2024 $ 3,000 Situation 2024 1 $ 1,500 2025 $ 2,100 2026 2025 $ 900 $ 900 2 1,500 900 2,400 3,000 2,400 3 1,500 2,100 1,600 3,000 1,500 4 500 3,000 1,000 3,500 875 5 500 3,000 1,300 3,500 1,500 6 500 3,000 7.Bee 4,600 1,700 Required: 2026 Complete the following table. Note: Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. Situation 2024 1 2 3 4 5 6 Gross Profit (Loss) Recognized…
Brady Construction Company contracted to build an apartment complex for a price of $7,000,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred during Year 2025 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 4,230 $ 1,500 Situation 123456 2024 $ 1,700 1,700 $ 2,730 2026 $ 1,500 1,500 3,200 4,230 3,200 1,700 2,730 3,200 4,230 3,100 700 3,200 1,400 4,900 975 5 700 3,200 2,700 4,900 3,100 6 700 3,200 3,800 6,555 3,500 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. Gross Profit (Loss) Recognized Revenue Recognized Over…
ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?
Sodlno
Brady Construction Company contracted to build an apartment complex for a price of $6,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred during Year 2024 2025 2026 $ 2,550 $ 1,320 $ 1,640 1,640 1,640 1,320 2,960 2,550 2,720 Situation 1 2 3 4 5 6 640 640 640 3,140 3,140 3,140 1,280 2,280 3,200 2024 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 1,320 $ 3,870 3,870 3,870 4,480 4,480 5,955 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. 2,960 2,620 945 2,620 2,960 Revenue Recognized Over Time…