Current Attempt in ProgressOriole Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has beenestimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing companyat $894,000. The following data pertain to the construction period.Costs to dateEstimated costs to completeProgress billings to dateCash collected to date(a)2025$263,120334,880272,000Gross profit recognized in 2026242,000Gross profit recognized in 2025 $$2026O Search$412,620185,380545,000495,0002027$607,000Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year ofthe construction period. (If answer is O, please enter O. Do not leave any fields blank.)-0-894,000894,000DELLOl

The gross earnings of an enterprise are called gross profit. A firm calculates gross profit by…

Answered: entered into a contract beginning…

Business

Accounting

entered into a contract beginning January 1, 2025.

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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Question

Current Attempt in Progress
Oriole Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been
estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company
at $894,000. The following data pertain to the construction period.
Costs to date
Estimated costs to complete
Progress billings to date
Cash collected to date
(a)
2025
$263,120
334,880
272,000
Gross profit recognized in 2026
242,000
Gross profit recognized in 2025 $
$
2026
O Search
$412,620
185,380
545,000
495,000
2027
$607,000
Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of
the construction period. (If answer is O, please enter O. Do not leave any fields blank.)
-0-
894,000
894,000
DELL
Ol

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