Percentage-of-Completion Method Example: Buildmore Construction Company received a contract for $6,000,000 in 2020 to build a parking deck for a large university. The following data was accumulated during the construction period: 2020 2021 2022 Costs to date $1,125,000 $2,652,000 $5,000,000 Estimated cost to complete 3,375,000 2,448,000 0 Progress billings 2,000,000 2,000,000 2,000,000 Cash collected 1,500,000 2,000,000 2,500,000 By year, record (a) Costs of Construction; (b) Progress billings; and (c) Collections. Then, recognize (d) revenue and gross profit; and lastly, (e) record completion of contract.
Percentage-of-Completion Method Example: Buildmore Construction Company received a contract for $6,000,000 in 2020 to build a parking deck for a large university. The following data was accumulated during the construction period: 2020 2021 2022 Costs to date $1,125,000 $2,652,000 $5,000,000 Estimated cost to complete 3,375,000 2,448,000 0 Progress billings 2,000,000 2,000,000 2,000,000 Cash collected 1,500,000 2,000,000 2,500,000 By year, record (a) Costs of Construction; (b) Progress billings; and (c) Collections. Then, recognize (d) revenue and gross profit; and lastly, (e) record completion of contract.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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| Percentage-of-Completion Method Example: | ||||||||||
| Buildmore Construction Company received a contract for $6,000,000 in 2020 to build a parking deck for a large university. The following data was accumulated during the construction period: | ||||||||||
| 2020 | 2021 | 2022 | ||||||||
| Costs to date | $1,125,000 | $2,652,000 | $5,000,000 | |||||||
| Estimated cost to complete | 3,375,000 | 2,448,000 | 0 | |||||||
| Progress billings | 2,000,000 | 2,000,000 | 2,000,000 | |||||||
| Cash collected | 1,500,000 | 2,000,000 | 2,500,000 | |||||||
| By year, record (a) Costs of Construction; (b) Progress billings; and (c) Collections. Then, recognize (d) revenue and gross profit; and lastly, (e) record completion of contract. |
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for the estimated total costs how did you get 4,500,000 , 5,100,000 , 5,000,000?
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