Grein's Construction Company, entered into a fixed-price contract with Alexa Co. on July 1, 2024, to construct a four-story office building. At that time, Grein's estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,420,000. The building was completed on December 31, 2026. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: Costs incurred to date Estimated costs to complete Billings to Axelrod, to date Year 2024 At 12-31-2024 $366,000 3,294,000 727,000 2025 2026 At 12-31-2025 $2,814,000 1,876,000 2,310,000 Assuming Grein's recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. If there is a loss, put the number in parenthesis. Gross Profit (Loss) Recognized At 12-31-2026 $ 4,747,000 0 4,420,000

Grein's Construction Company, entered into a fixed-price contract with Alexa Co. on July 1, 2024, to construct a four-story office building. At that time, Grein's estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,420,000. The building was completed on December 31, 2026. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: Costs incurred to date Estimated costs to complete Billings to Axelrod, to date Year 2024 At 12-31-2024 $366,000 3,294,000 727,000 2025 2026 At 12-31-2025 $2,814,000 1,876,000 2,310,000 Assuming Grein's recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. If there is a loss, put the number in parenthesis. Gross Profit (Loss) Recognized At 12-31-2026 $ 4,747,000 0 4,420,000

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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