SOLVE TUTOR ASAP Crane Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Crane enteredinto a fixed-price contract to construct an office building for$27,000,000. Information relating to the contract is as follows:At December 3120182019Percentage of completion10%40%Estimated total cost at completion$ 2,00,00,000$ 2,14,00,000Gross profit recognized (cumulative)$ 13,80,000$ 33,10,000Contract costs incurred during 2019 were:a. $5,250,000.b. $6,560,000.c. $8,190,000.d. $8,560,000.

Step 1: 2018 Costs incurred to date Costs incurred to date = Percentage of completion x Total…

Answered: Crane Construction Co. has consistently…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

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Problem 48P

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Yellow. Arrow Construction. Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Yellow Arrow entered into a fixed-price contract to construction an office bundling for P12,000,000. Information relating to the contract is as follows: At December 31 2018 2019 15% 45% Percentage of completion Estimated total cost at completion Gross profit recognized (cumulative) P9,600,000 P9,000,000 600,000 1,440,000 How much is the contract costs incurred during 2019?
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Lake Construction Company has consistently used the percentage of completion method in recognizing income. During 2021, Lake entered into a fixed-price contract to construct an office building for P10,000,000. Information relating to the contract is as follows: As of December 31 2021 2022 Percentage of completion 20% 60% Estimated total cost at completion P 7,500,000 P 8,000,000 Income recognized (cumulative) 500,00 1,200,000 Contract costs incurred during 2022 were: 3,200,000 3,300,000 3,500,000 4,800,000 Gross profit recognized during 2022 amounted to: 100,000 300,000 600,000 700,000
Recording Long-Term Construction: Recognize Revenue at a Point in Time and Over Time Watson Construction Company contracted to build a plant for $500,000. Construction started in January 2020 and was completed in November 2021. Watson uses the cost-to-cost method to measure the completion of its performance obligations. Data relating to the contract follow. 2020 2021 Costs incurred during year $290,000 $120,000 Estimated additional costs to complete 125,000 0 Billings during year 270,000 230,000 Cash collections during year 250,000 250,000 Revenue Recognized at a Point in Time Revenue Recognized Over Time a. Provide the 2020 and 2021 journal entries for Watson assuming revenue is recognized at a point in time. Provide entries for (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) revenues and expenses. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr.…
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The Lao Construction Company recognizes revenue over time according to percentage of completion for its long-term construction contracts. In 2024, Lao began work on a construction contract. Information on this contract at the end of 2024 is as follows: Cost incurred during the year $ 1,500,000 Estimated additional cost to complete 6,000,000 Gross profit recognized in 2024 250,000 What is the contract price (total revenue) on this contract?
(Recognition of Revenue on Long-Term Contract and Entries) Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2017, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow: 2017 2018 Costs incurred during the year $640,000 $1,425,000 Estimated costs to complete, as of December 31 960,000 –0– Billings during the year 420,000 1,680,000 Collections during the year 350,000 1,500,000 Instructions(a) What portion of the total contract price would be recognized as revenue in 2017? In 2018?(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2018?(c) Prepare a complete set of journal entries for 2017 (using the percentage-of-completion method).
Santiago builders began construction work in 2021 for a project with contract price of P24,000,000. Santiago Builders uses percentage of completion. The financial statements for 2021 relating to the contract show the following: Accounts receivable. P 1,500,000 Construction in progress. 4,800,000 Contract billings to date. 4,500,000 Realized gross profit in 2021. 600,000 1.Compute the total cost incurred to date A.4,200,000. C. 5,400,000 B.4,800,000. D. 5,100,000 2.Compute the cash collection during 2021 A.3,000,000. C. 2,100,000 B.4,200,000. D. 3,900,000
Meberick Company has consistently used the percentage-of-completion method of recognizing income. In 2021, Bruner started work on a €49,000,000 construction contract that was completed in 2022. The following information was taken from Meberick 's 2021 accounting records. What amount of gross profit should Bruner have recognized in 2021 on this contract? Progress billings €15,400,000 Costs incurred 14,700,000 Collections 9,600,000 Estimated costs to complete 29,400,000
Roger Inc. began work in 2021 on a contract for $8,400,000. Other data are as follows: 2021 2022 Costs incurred to date $3,600,000 $5,600,000 Estimated costs to complete 2,400,000 — Billings to date 2,800,000 8,400,000 Collections to date 2,000,000 7,200,000 Roger uses the percentage-of-completion method. Calculate the gross profit to be recognized in 2021.
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