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

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Required information [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,542,000 5,658,000 2,020,000 $ 3,772,000 1,886,000 4,294,000 $ 2,074,600 0 Cash collections during the year 1,810,000 3,800,000 3,686,000 4,390,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal…
Required information Skip to question [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,016,000 $2,808,000 $2,613,600 Estimated costs to complete as of year-end 5, 184,000 2,376, 000 0 Billings during the year 2, 180,000 2,644,000 5, 176,000 Cash collections during the year 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the…
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The following costs were incurred by Barak Klever Ltd in 2020 in the design and construction of a new office building over a nine-month period during 2020; GH¢ (000) Feasibility study Architects' fees 100 Site clearance (by external demolition professionals) 80 Construction materials 600 Cost of own inventories used in the construction (Net realizable value if sold outside the company GH¢24,000) 30 Internal construction staff salaries during the period of construction 360 External contractor costs 2,400 Income from renting out…
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