Hardhat Construction Company has a contract to construct a $4,500,000 bridge at an estimated cost of $4,000,000. The contractis to start in July 2014, and the bridge is to be completed in October 2016. The following data pertain to the construction period. 2014 2015 2016 Costs to date $1,000,000 3,000,000 900,000 $2,916,000 1,134,000 2,400,000 1,750,000 $4,050,000 Estimated costs to complete Progress billings during the year Cash collected during the year 1,200,000 2,000,000 750,000 Record the journal entries for 2014, 2015, and 2016 using the percentage of completion method Record the income statement and balance sheet for 2014, 2015, and 2016

Hardhat Construction Company has a contract to construct a $4,500,000 bridge at an estimated cost of $4,000,000. The contractis to start in July 2014, and the bridge is to be completed in October 2016. The following data pertain to the construction period. 2014 2015 2016 Costs to date $1,000,000 3,000,000 900,000 $2,916,000 1,134,000 2,400,000 1,750,000 $4,050,000 Estimated costs to complete Progress billings during the year Cash collected during the year 1,200,000 2,000,000 750,000 Record the journal entries for 2014, 2015, and 2016 using the percentage of completion method Record the income statement and balance sheet for 2014, 2015, and 2016

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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Zoczi b egan work on a $420,000 construction contract in 2017. During 2017 Zorzi incurred costs of $278,000, billed its customer for $215.000, ancd collected $175,000. At December 31, 2017, the estimated additional costs to complete the project total $162,000, Prepare Zorzi's Journal entry to record profit or loss utilizing the percentage of Completion Method O Construction Expense Revenue from Long Term Contracts O Construction Expemse Construction in Process Revenue from Long Term Contracts O Construction Expense Construction im Process Revenue from Long Term Contracts O Construction Expense Construction in Process Revenue from Long Term Contracts $285 356 $285,356 $285 356 $20 000 $265 356 $420 000 $20 000 $400.000 $400 000 $20.000 $420 000
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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.
aris Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services). For the last quarter of 2020, Caris’s cost records indicate the following: SUPPORT PRODUCTION Materials Requisitions (MR) Utility Services (US) Machining Assembly Total Budgeted overhead costs before any interdepartment cost allocations $400,000 $2,000,000 $9,456,000 $13,458,000 $25,314,000 Support work supplied by MR (Number of requisitions) 0 25% 40% 35% 100% Support work supplied by US (Power costs) 10% 0 30% 60% 100% Required 1. Allocate the two support departments’ costs to the two operating departments using the following method: Step-down method (allocate MR first) Step-down method (allocate US first)
PT Superstar has entered into a contract beginning January 31, 2021, to build a sport center. The feasibility study shows that the sport center will cost Rp6 billion and will be finished on December 31, 2024. The center will be billed to the local government at Rp10 billion. The following data (in billion rupiah) pertain to the construction period. 2022 2023 2024 Cost to date 2.7 4.5 6.5 Estimated cost to 3.3 1.5 complete Progress billings to date 2.7 9 Cash collected to date 2.4 5.5 Instructions Do the following tasks by applying the percentage-of-completion method. a. prepare any journal entry related during each year of the construction period. b. prepare partial Statement of Financial Position and Income Statement related to the construction in 2022 - 2024 6.
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Please refer to the picture below for information. Kindly show the complete solution. Thank you so much. Question 1: What is the total cost of the Building on June 30, 2016?