Blossom Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing con at $896,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2025 $266,640 * Your answer is incorrect. 339,360 270,000 240,000 Gross profit recognized in 2025 $ Gross profit recognized in 2026 Gross profit recognized in 2027 2026 $412,080 193,920 $ 545,000 495,000 2027 $617,000 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- 896,000 896,000 204920

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Blossom Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been
estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company
at $896,000. The following data pertain to the construction period.
Costs to date
Estimated costs to complete
Progress billings to date
Cash collected to date
2025
$266,640
* Your answer is incorrect.
2026
$412,080
339,360
193,920
270,000
545,000
240,000 495,000
Gross profit recognized in 2025 $
Gross profit recognized in 2026
Gross profit recognized in 2027
2027
$617,000
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-
896,000
896,000
204920
Transcribed Image Text:Blossom Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2025 $266,640 * Your answer is incorrect. 2026 $412,080 339,360 193,920 270,000 545,000 240,000 495,000 Gross profit recognized in 2025 $ Gross profit recognized in 2026 Gross profit recognized in 2027 2027 $617,000 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- 896,000 896,000 204920
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