On February 1, 2023, Magicfort Contractors agreed to construct a building at a contract price of $5,840,000. Magicfort estimatedtotal construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billingsfor this contract is as follows:202320242025Total costs incurred to dateEstimated costs to complete$1,512,0002,520,000$2,664,000 $4,620,0001,776,000-0-Customer billings to date2,240,0004,032,0005,640,000Collections to date2,040,0003,540,0005,540,000Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, showthe gross profit that should be reported for 2023, 2024, and 2025.Percentage-of-CompletionGross Profit20232023Cost-RecoveryGross Profit2024$2025$SA20242025$

Working for % ofcompletion method202320242025AContract Price$5,840,000$5,840,000$5,840,000BCost…

Answered: Fill in the correct amounts on the…

Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show the e gross profit that should be reported for 2023, 2024, and 2025.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Select what will be the most correct calculation of retained earnings for next year.

A: The most correct calculation of retained earnings for next year implies towards adding the net…

Q: How do i calculate Times interest earned ratio and earnings per share for Costco 2023 & 2022?

A: Sure, I'll explain how to calculate the Times Interest Earned (TIE) ratio and Earnings Per Share…

Q: Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA…

A: Income statement is part of financial statements. It includes revenue and expenses of a period.…

Q: Appraise the fiscal performance of Ghana for the past ten years (2022-2012).

A: Fiscal performance refers to how well a government manages its revenue, expenditure, and debt…

Q: nko Inc. reported the following balances at the end of each year:…

A: >Accounts Payable are the balances of suppliers that have not yet been paid in cash for the…

Q: Salaries paid in cash during 2019 Salaries applicable to 2019, due to be paid January 5, 2020.…

A: On modified accrual basis (Entries in 2019) 1). Salary Dr. $3000000 To…

Q: FMG Altman Z Score 2018 2019 2020 0.55 0.54 0.57 0.47 0.48 0.51 0.10 0.24 0.30 0.00124 0.00198…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: Required information [The following information applies to the questions displayed below.] In 2024,…

A: For percentage of completion method, the gross profit and revenue are recognized on the basis of the…

Q: PT ABC uses the percentage-of-completion method of accounting. In 2018, ABC began work on a contract…

A: Gross Profit = Revenue - Cost Percent of Contract Completed = 18,000,000 / (18,000,000 +…

Q: Nandoni wholesalers Ltd is in the process of finalizing the business plan for 2025. The financial…

A: here's the draft Statement of Comprehensive Income for Nandoni Wholesalers for the period ended 31…

Q: Use Table 1 and the following information on Company X to perform a pro-forma financial modeling…

A: Forecasted financial statements refers to those financial statements which represent the predicted…

Q: The following represents the target's accounting data you have estimated for the years 2024-2025.…

A: Step 4: Determine what the acquisition is worth to the acquiring firm The acquisition worth to the…

Q: Pronghorn Industries changed from the double-declining-balance to the straight-line method in 2021…

A: Depreciation: It is often defined as a gradual reduction in the cost of fixed assets that are used…

Q: Please see information attached to answer below questions. Preferrably in Excel. a1. Produce…

A: The question is related to Balance Sheet and Income Statement for the year ended 2020. The details…

Q: At May 31, 2022, the accounts of Sandhill Company show the following. 1. 2. 3. 4. May 1…

A: Preparation of partial Balance sheet of sandhill company are as follows

Q: Search online for Tesla’s Annual Report for fiscal year 2020 that ended on December 31, 2020. Answer…

A: Ratios help analyse how the company is performing. They help investors get valuable insights about…

Q: Define annual report

A: Annual report It is a detailed report about the activities of an entity over the preceding year. It…

Q: View the income statement, and write a 100 word minimum analysis in complete sentences. Period…

A: Based on the income statement we can analyze a lot of information to understand the events occurring…

Q: Income statement and balance sheet data for The Athletic Attic are provided below.Required: 1.…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: n 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…

A: Revenue(each year)=Cost incurred/(total expected cost)*Total expected revenue-Revenue earlier…

Q: Godhi's 2024 financial statements reported the following items-with 2023 figures given for…

A: In order to determine the rate of return on total assets the net income and interest expense are…

Q: Required information [The following information applies to the questions displayed below.] Income…

A: "For multiple sub parts posted, we solve only first three sub-parts. You can repost the question…

Q: a. Show me the stages of preparing a monthly projection for the income statement, balance sheet, and…

A: Projected financial statements are described as those statements which are prepared for the future…

Q: lable from the accounting records of Spenser Co. for the year ended December 31, 2015 Selling,…

A: Gross profit = Net Sales - Cost of goods sold Operating Income = Gross profit - Selling, general and…

Q: Inc

A: The unrealized loss on trading securites is recognized in the income statement under other expenses…

Q: s

A: Gross profit Sheridan Construction Company should recognize in 2024 is $3,660,000.Explanation:How to…

Q: e formula in the textbook and calculate the 2022 Profit Margin Ratio (Profitability). Fill in the…

A: The profit margin ratio, also called the net profit margin or return on sales, is a profitability…

Q: Note 5. Accrued Liabilities The Company's accrued liabilities consist of the following as of January…

A: The following transactions are accounted for the applicability of TVM as their value will increase…

Q: In its income statement for the year ended December 31, 2022, Novak Corp. reported the following…

A: Income Statement :— It is one of the financial statements that shows profitability, total revenue…

Q: 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three…

A: To calculate the amount of revenue and gross profit (loss) to be recognized in each of the three…

Q: Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.

A: Total debts include both current liabilities and long term liabilities. Total assets include all…

Q: Joseph Bright lists the following transactions for the period ended 30 September 2017. Classify EACH…

A: The objective of the question is to classify the given transactions into either 'capital' or…

Question

On February 1, 2023, Magicfort Contractors agreed to construct a building at a contract price of $5,840,000. Magicfort estimated
total construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billings
for this contract is as follows:
2023
2024
2025
Total costs incurred to date
Estimated costs to complete
$1,512,000
2,520,000
$2,664,000 $4,620,000
1,776,000
-0-
Customer billings to date
2,240,000
4,032,000
5,640,000
Collections to date
2,040,000
3,540,000
5,540,000
Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show
the gross profit that should be reported for 2023, 2024, and 2025.
Percentage-of-Completion
Gross Profit
2023
2023
Cost-Recovery
Gross Profit
2024
$
2025
$
SA
2024
2025
$

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Percentage-of-completion accounting

VIEW

Step 2: Cost recovery method

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Pares
Compute and disaggregate Costco's RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018; confirm that RNOA= NOPM x NOAT.
Please help me. Thankyou.
Can you walk me through this problem?
K.
A revenue was earned in 2019 but payment is not received until 2020. Using the accrual basis of accounting, the revenue should appear on: A. the 2020 income statement B. the 2019 income statement C. both the 2019 and 2020 income statements D. neither the 2019 nor 2020 income statement
At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $2, 189 that were applicable to payrolls for the year then ended. Exercise 7 - 9 (Algo) Part c c. Assume that when the payroll taxes were paid in October 2022, the payroll tax expense account was charged. Assume that at September 30, 2023, the accountant again neglected to accrue the payroll tax liability, which was $2,660 at that date. Determine the income statement and balance sheet effects of not accruing payroll taxes at September 30 2023
1.32. Creating Balance Sheets and Income Statements. Using the information in the below table, prepare a classified balance sheet for Erie Company as of December 31, 2019 and December 31, 2020, along with multi-step income statements for the years then ended
Please help me find the following numbers. Please find the Sales, COGS, Other Operating expenses, and Depreciation & Amortization for the years 2020, 2021, and 2022 for Humana Inc and The Cigna Group. Thank you! Please show me where you found the numbers (links if possible!)