Hardhat Construction Company has a contract to construct a €4,500,000 bridge at an estimated cost of €4,556,250. The contract is to start in July 2019, and the construction period. 2019 $1,000,000 3,000,000 900,000 750,000 2020 $ 2,916,000 $ 4,556,250 $1640,250 2,400,000 1,750,000 2021 Cost to date Estimated cost to complete Progress billing during the year Cash collected during the year REQUIRED: a) Using percentage-of-completion method, prepare schedules to compute the profit and loss to be recognized as a result of this contract for the year ended October 31, 2019, 2020 and 2021. b) Using cost recovery method, prepare schedules to compute the profit and loss to be recognized as a result of this contract for the year ended October 31, 2019, 2020 and 2021. 1,200,000 2,000,000

Hardhat Construction Company has a contract to construct a €4,500,000 bridge at an estimated cost of €4,556,250. The contract is to start in July 2019, and the construction period. 2019 $1,000,000 3,000,000 900,000 750,000 2020 $ 2,916,000 $ 4,556,250 $1640,250 2,400,000 1,750,000 2021 Cost to date Estimated cost to complete Progress billing during the year Cash collected during the year REQUIRED: a) Using percentage-of-completion method, prepare schedules to compute the profit and loss to be recognized as a result of this contract for the year ended October 31, 2019, 2020 and 2021. b) Using cost recovery method, prepare schedules to compute the profit and loss to be recognized as a result of this contract for the year ended October 31, 2019, 2020 and 2021. 1,200,000 2,000,000

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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How much is the contract revenue yo date in the year 2019?
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