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 2 3 4 5 6 Costs Incurred during Year 2024 2026 $1,320 2,960 2,720 1,280 2,280 3,200 Situation 1 2 3 4 5 6 $ 1,640 1,640 1,640 640 640 640 2025 $ 2,550 1,320 2,550 3,140 3,140 3,140 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,870 3,870 3,870 2024 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. $ 1,320 2,960 2,620 945 Revenue Recognized Over Time 2026 2025 2,620 2,960 Gross Profit (Loss) Recognized Revenue Recognized Upon Completion 2024 2026 0 0 0 0 o 2025 0 0 0 0

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 2 3 4 5 6 Costs Incurred during Year 2024 2026 $1,320 2,960 2,720 1,280 2,280 3,200 Situation 1 2 3 4 5 6 $ 1,640 1,640 1,640 640 640 640 2025 $ 2,550 1,320 2,550 3,140 3,140 3,140 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,870 3,870 3,870 2024 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. $ 1,320 2,960 2,620 945 Revenue Recognized Over Time 2026 2025 2,620 2,960 Gross Profit (Loss) Recognized Revenue Recognized Upon Completion 2024 2026 0 0 0 0 o 2025 0 0 0 0

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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Venus' Venerable Construction contracts to lay marble in a new museum over a three-year period, and the project is considered to be a single performance obligation. The company's accountants record the following details relating to the project: Contract details: Contract price Year Revenue Expense Income Estimated cost Estimated profit $1,500 $1,200 $300 Spending pattern during construction: Year 1 1 [R1] [E1] [11] Year 2 Year 3 $300 Answer the following question(s) by filling in the blanks. Do not include any symbols besides decimals in your answers (do not input commas). $750 Compute the amount of revenue, expense, and income for each year assuming that its performance obligation is fulfilled over time and that the costs it incurs are reflective of the value conveyed to the customer. 2 [R2] [E2] [12] $150 3 [R3] [E3] [13] Venus' Venerable Construction contracts to lay marble in a new museum over a three-year period, and the project is considered to be a single performance obligation.…
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A A N T During 2023, Cullumber Corporation started a construction job with a contract price of $3.78 million. Cullumber ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Cullumber sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date Estimated costs to complete (a) 0 S? S X Your anwwer is correct alt Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter Type here to search B LU $ C R D. F 2023 $540,000 2.835.000 5 V T $1,890,000 2024 6 1,890.000 B 6 193 Y G H 17 &7 & 17 7 2025 $3.680.000 N 10 8 UO (81 ( 19 MO -1°C Clear JOK 2 10 V NOGO alt 00 0 L 3 111 OU РО { . I NO ** 112 0 13 [ ? 0 ctri de insert L4 1 backspace enter t shift SUP ENG V
UN LOUIS ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?
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Brady Construction Company contracted to build an apartment complex for a price of $6,100,000. 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 Situation 1 2 2|3 3 2024 Costs Incurred during Year 2026 $1,230 2,840 2,480 1,220 2,070 2,900 4 5 6 $ 1,610 1,610 1,610 610 610 610 2025 $ 2,460 1,230 2,460 3,110 3,110 3,110 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. 2024 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,690 3,690 3,690 4,270 4,270 5,655 $ 1,230 2,840 2,380 930 Revenue Recognized Over Time 2025…
Given the following table, what is the minimum profit and overhead for this project? Description Grading and Excavation Sanitary Sewer Water Line Storm Drain Site Concrete - Labor Site Concrete - Concrete - Outside Lighting O $33,515 $31,485 $29,835 O $25.945 Contract Billed to Date Actual Costs Amount $234,699 $234,699 $57,800 $27,365 $31,750 $16,850 $19,200 $21,265 $23,600 $197,830 Budgeted Costs $59,000 $28,200 $31,000 $17,000 $19,200 $20,900 $23,600 $198,900 Overrun -1,200 -835 750 -150 0 365 0 -1,070
Tullis Construction enters into a long-term fixed price contract to build an office tower for $10,600,000. In the first year of the contract Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete the project are $5,000,000. Tullis billed $5,000,000 in year 1 and collected $3,100,000 by the end of the end of the year. How should Tullis report Construction in Progress and Billings on Construction in Progress at the end of year 1 on the balance sheet assuming the use of the completed - contract method? O A. asset of $2,000,000 O B. liability of $1,900,000 O C. asset of $1,900,000 O D. liability of $2,000,000
Brady Construction Company contracted to build an apartment complex for a price of $5,400,000. 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 Costs Incurred during Year 2024 2026 1,540 1,540 $ 1,540 Situation 1 2 3 4 5 6 540 540 540 2025 $ 2,250 1,020 2,250 3,040 3,040 3,040 $1,020 2,560 1,920 1,080 1,580 2,200 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,270 $ 1,020 3,270 3,270 3,780 3,780 5,000 2,560 1,820 895 1,820 2,060 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…
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6. Suppose that Schw Corp incurs costs evenly in the construction of their new wrestling room. It takes 3 years to complete this state of the art facility. Costs incurred beg Jan 1, 2020 and ending Dec 31, 2022 as as follows: 2020 $35,000 2021 $141,000 2022 $56,000 What are the weighted average costs for 2022? Thank you Brenda