← Chapter 17 - Homework Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress 9.64/20 On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below. 2025 2026 2027 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 (a1) Your answer is correct. Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is 0, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Costs to Date (12/31/25) Estimated Costs to Complete Estimated Total Costs Percent Complete Costs Incurred Revenue Recognized Profit/(Loss) Recognized in 2025 eTextbook and Media Solution (a2) 2025 - Your answer is partially correct. +A A 2,880,000 3,520,000 6,400,000 -2,880,000 45 % 3,780,000 +A $ 900,000 = SUPPORT Assistance Used Attempts: unlimited Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2026. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Estimated Costs to Complete Costs to Date (12/31/26) Estimated Total Costs Percent Complete Costs Incurred in 2026 Revenue Recognized in 2026 Profit/(Loss) Recognized in 2026 eTextbook and Media Solution Save for Later (a3) 2026 +A +A $ +A -4,460,000 5,110,000 7,300,000 -2,230,000 70 % 2,100,000 -130,000 Assistance Used Attempts: unlimited Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
← Chapter 17 - Homework Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress 9.64/20 On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below. 2025 2026 2027 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 (a1) Your answer is correct. Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is 0, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Costs to Date (12/31/25) Estimated Costs to Complete Estimated Total Costs Percent Complete Costs Incurred Revenue Recognized Profit/(Loss) Recognized in 2025 eTextbook and Media Solution (a2) 2025 - Your answer is partially correct. +A A 2,880,000 3,520,000 6,400,000 -2,880,000 45 % 3,780,000 +A $ 900,000 = SUPPORT Assistance Used Attempts: unlimited Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2026. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Estimated Costs to Complete Costs to Date (12/31/26) Estimated Total Costs Percent Complete Costs Incurred in 2026 Revenue Recognized in 2026 Profit/(Loss) Recognized in 2026 eTextbook and Media Solution Save for Later (a3) 2026 +A +A $ +A -4,460,000 5,110,000 7,300,000 -2,230,000 70 % 2,100,000 -130,000 Assistance Used Attempts: unlimited Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
on march 1 2025 pechstein company contracted to construct a factory building for Fabrik Manufacturing Inc., for a total contract price of $8,400,000.
Transcribed Image Text:← Chapter 17 - Homework
Question 4 of 5
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Show Attempt History
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Current Attempt in Progress
9.64/20
On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a
total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated
costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below.
2025
2026
2027
Contract costs incurred during the year
$2,880,000
$2,230,000
$2,190,000
Estimated costs to complete the contract at 12/31
3,520,000
2,190,000
-0-
Billings to Fabrik during the year
3,200,000
3,500,000
1,700,000
(a1)
Your answer is correct.
Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this
contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is 0, please enter O. Do not leave any fields blank.
Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Costs to Date (12/31/25)
Estimated Costs to Complete
Estimated Total Costs
Percent Complete
Costs Incurred
Revenue Recognized
Profit/(Loss) Recognized in 2025
eTextbook and Media
Solution
(a2)
2025
-
Your answer is partially correct.
+A
A
2,880,000
3,520,000
6,400,000
-2,880,000
45 %
3,780,000
+A
$
900,000
= SUPPORT
Assistance Used
Attempts: unlimited
Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this
contract for the year ended December 31, 2026. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank.
Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Estimated Costs to Complete
Costs to Date (12/31/26)
Estimated Total Costs
Percent Complete
Costs Incurred in 2026
Revenue Recognized in 2026
Profit/(Loss) Recognized in 2026
eTextbook and Media
Solution
Save for Later
(a3)
2026
+A
+A
$
+A
-4,460,000
5,110,000
7,300,000
-2,230,000
70
%
2,100,000
-130,000
Assistance Used
Attempts: unlimited
Submit Answer
The parts of this question must be completed in order. This part will be available when you complete the part above.
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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