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 2024 2025 $ 2,100 Estimated Costs to Complete (As of the End of the Year) 2024 $3,000 2025 Situation 1 $ 1,500 2026 $ 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 1.800 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 Revenue Recognized Over Time Revenue Recognized Upon Completion 2025 2026 2024 2025 2026

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 2024 2025 $ 2,100 Estimated Costs to Complete (As of the End of the Year) 2024 $3,000 2025 Situation 1 $ 1,500 2026 $ 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 1.800 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 Revenue Recognized Over Time Revenue Recognized Upon Completion 2025 2026 2024 2025 2026

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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Exercise 6-23 (Algo) Income (loss) recognition; Long-term contract; revenue recognition over time vs. upon project completion [LO6-9] Brady Construction Company contracted to build an apartment complex for a price of $6,500,000. 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 HNm tin v 2 3 4 5 6 Costs Incurred during Year 2024 2025 2026 $ 1,350 $ 1,650 $ 2,580 1,650 3,000 1,650 2,800 650 1,300 650 650 1,350 2,580 3,150 3,150 3,150 2,350 3,300 Estimated Costs to Complete (As of the End of the Year) 2024 2026 2025 $ 1,350 3,000 2,700 950 $ 3,930 3,930 3,930 4,550 4,550 6,055 2,700 3,050 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…
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