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Brady Construction Company contracted to build an apartment complex for a price of $5,500,000. 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 1 2 3 4 5 6 Required: Costs Incurred during Year 2024 2026 $ 1,550 1,550 1,550 550 550 550 2025 $ 2,280 1,050 2,280 3,050 3,050 3,050 $ 1,050 2,600 2,000 1,100 1,650 2,300 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,330 $ 1,050 3,330 2,600 3,330 1,900 3,850 900 3,850 1,900 5,100 2,150

Brady Construction Company contracted to build an apartment complex for a price of $5,500,000. 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 1 2 3 4 5 6 Required: Costs Incurred during Year 2024 2026 $ 1,550 1,550 1,550 550 550 550 2025 $ 2,280 1,050 2,280 3,050 3,050 3,050 $ 1,050 2,600 2,000 1,100 1,650 2,300 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,330 $ 1,050 3,330 2,600 3,330 1,900 3,850 900 3,850 1,900 5,100 2,150

FINANCIAL ACCOUNTING
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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Brady Construction Company contracted to build an apartment complex for a price of $5,500,000. 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 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 $1,550 1,550 1,550 550 550 550 Situation 1 2 3 4 5 6 2025 $ 2,280 1,050 2,280 3,050 3,050 3,050 $ 1,050 2,600 2,000 1,100 1,650 2,300 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. 196,926✔ 196,926✔ Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 1,050 2,600 1,900 900 1,900 2,150 2024 $196,926 $ 289,672 $ (46,926)✔ $ 3,330 3,330 (350,661) X 137,500 6,620,500 x 137,500 (137,500) 14,602 x (141,920) X Revenue Recognized Over Time 2025 2026 3,330 3,850 3,850 5,100 X Answer is not complete. Gross Profit (Loss) Recognized 133,402✔ 150,000✔ (176,265) X 250,000 (243,478) X Revenue Recognized Upon Completion 2024 2026 (14,602) X 2025 (153,735) X $ 620,000 (176,265) X
Transcribed Image Text:Brady Construction Company contracted to build an apartment complex for a price of $5,500,000. 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 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 $1,550 1,550 1,550 550 550 550 Situation 1 2 3 4 5 6 2025 $ 2,280 1,050 2,280 3,050 3,050 3,050 $ 1,050 2,600 2,000 1,100 1,650 2,300 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. 196,926✔ 196,926✔ Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 1,050 2,600 1,900 900 1,900 2,150 2024 $196,926 $ 289,672 $ (46,926)✔ $ 3,330 3,330 (350,661) X 137,500 6,620,500 x 137,500 (137,500) 14,602 x (141,920) X Revenue Recognized Over Time 2025 2026 3,330 3,850 3,850 5,100 X Answer is not complete. Gross Profit (Loss) Recognized 133,402✔ 150,000✔ (176,265) X 250,000 (243,478) X Revenue Recognized Upon Completion 2024 2026 (14,602) X 2025 (153,735) X $ 620,000 (176,265) X
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