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 $6,500,000. Construction began in 2024 andwas completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for theproject. All costs are stated in thousands of dollars.SituationHNm tin v23456Costs Incurred during Year202420252026$ 1,350$ 1,650 $ 2,5801,6503,0001,6502,8006501,3006506501,3502,5803,1503,1503,1502,3503,300Estimated Costs to Complete(As of the End of the Year)202420262025$ 1,3503,0002,700950$ 3,9303,9303,9304,5504,5506,0552,7003,050Required:Complete the following table.Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should beindicated by a minus sign.

Note 1 - Revenue Recognized in 2024SituationCost Incurred during the year (1)Estimated cost to…

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 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 $1,650 1,650 $1,350 3,000 1,650 2,800 1,300 2,350 3,300 650 650 650 2025 $ 2,580 1,350 2,580 3,150 3,150 3,150 Required: Complete the following table. Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,930 $ 1,350 3,930 3,930 4,550 4,550 6,055 3,000 2,700 950 2,700 3,050 I

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 1 2 3 4 5 6 Costs Incurred during Year 2024 2026 $1,650 1,650 $1,350 3,000 1,650 2,800 1,300 2,350 3,300 650 650 650 2025 $ 2,580 1,350 2,580 3,150 3,150 3,150 Required: Complete the following table. Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,930 $ 1,350 3,930 3,930 4,550 4,550 6,055 3,000 2,700 950 2,700 3,050 I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Indiana Company began a construction project in 2024 with a contract price of $162 million to be received when the project is completed in 2026 During 2024 Indiana incurred $35 million of costs and estimates an additional $15 million of costs to complete the project Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed in 2025, Indiana incurred additional costs of $59 milion and estimated an additional $38 million in costs to complete the project indiana Note: Do not round intermediate calculations. Multiple Choice recognized $911 milion gross profe on the project in 2025 recognized $9.00 million gross prefit on the project in 2025 ced $3000 mon gress profe on the project in 2025
Denger
Sheridan Construction Co. contracted to build a bridge for $10,500,000. Construction began in 2024 and was completed in 2025. Data relating to the construction are: Costs incurred during the year Estimated costs to complete (a) 2024 $4,095,000 Revenue $ 2,730,000 Sheridan uses the percentage-of-completion method. How much revenue should be reported for 2024? 2025 $2,780,000
1. At the Poly Novo 2023 Annual General Meeting (" AGM) heid on 3 November, 2023 they revealed plans to construct a new manufacturing facility adjacent to its existing facility, PolyNovo has already performed a substantial amount of design analysis related to the new facility at a cost of $70, 000. The capital expenditure of $845, 000 associated with the construction of the new facility and the annual operating expenses are substantial. 2. The capital cost of the new facility is expected to be $845, 000 today. PolyNovo must also purchase $300, 000 of plant and equipment ("P&E"). At the end of FY23 PolyNovo had" $46.8m of cash on hand and it plans to use S0.3 million of their cash balance to pay for the building which will reduce the capital cost to just $545,000. If the new facility is built, a piece of obsolete manufacturing equipment must be sold. The equipment had a total capital cost in 2020 of $220,000 and is being depreciated at 511,000 per annum for the years 2021 to 2030…
Please Provide answer as possible fast
Cullumber Construction Co. uses the percentage-of-completion method. In 2024, Cullumber began work on a contract for $23200000; it was completed in 2025. The following cost data pertain to this contract: Year Ended December 31 2024 2025 Cost incurred during the year $8736000 $5720000 Estimated costs to complete at the end of year 5824000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is ○ $3456000. ○ $8744000. $2920000. $3560000.
McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2023 and completed in 2024. Cost and other data are presented below 2023 Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year $ 1,500,000 1,200,000 2024 $ 1,300,000 0 1,200,000 1,000,000 1,300,000 1,500,000 Assume that McCombs recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024, Note: Loss amounts should be indicated with a minus sign. Amount of gross profit (or loss) recognized in 2023 Amount of gross profit (or loss) recognized in 2024
Sodlno
Would you please help me understand how my answers are incorrect? I have been looking at this for an hour.Thank you.
Hi can someone help me with this question please?