- Chapter 6SavedHelpSave & ExitIndiana Co. began a construction project in 2021 with a contract price of $162 million to be received when the project is completed in 2023.During 2021, Indiana incurred $34 million of costs and estimates an additional $82 million of costs to complete the project. Indiana recognizesrevenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.Indiana:Multiple ChoiceO Recognized $13.48 million gross profit on the project in 2021.Recognized $34.00 million loss on the projectin 2021.Recognized $80.00 million loss on the project in 2021.< Prey5 of 15Next > Recognized $13.48 million gross profit on the project in 2021.Recognized $34.00 million loss on the project in 2021.O Recognized $80.00 million loss on the project in 2021.Recognized no gross profit or toss on the project in 2021( Prev5 of 15Next >

In case of percentage of completion method, revenue is recognized over duration of contract based on…

Indiana Co. began a construction project in 2021 with a contract price of $162 million to be received when the project is completed in 2023. During 2021, Indiana incurred $34 million of costs and estimates an additional $82 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Indiana:

Indiana Co. began a construction project in 2021 with a contract price of $162 million to be received when the project is completed in 2023. During 2021, Indiana incurred $34 million of costs and estimates an additional $82 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Indiana:

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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Indiana Co. began a construction project in 2018 with a contract price of $162 million to be received when the project is completed in 2020. During 2018, Indiana incurred $33 million of costs and estimates an additional $85 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2019, Indiana incurred additional costs of $64 million and estimated an additional $51 million in costs to complete the project. Indiana (Do not round your percentage calculated): Multiple Choice Recognized $3.00 million loss on the project in 2019. Recognized $6.13 million gross profit on the project in 2019. Recognized $3.13 million loss on the project in 2019. Recognized $3.13 million gross profit on the project in 2019.
Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are: Costs incurred during the year Estimated costs to complete Dalton uses the percentage-of-completion method. 2021 $3,300,000 2,700,000 2022 $2,750,000 Instructions (a) How much revenue should be reported for 2021? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2021. (c) Make the entry to record the revenue and gross profit for 2021. (d) How much gross profit should be reported for 2022? Show your computation.
The year 2021 was correct, But the year 2022 and 2023 were incorrect answers
Cc.63.
need correct and complete answer with explanation , computation , steps in text form please provide explanation and computation clearly for each steps answer in text form
Assume that Blossom Construction Company has a non-cancellable contract to construct a $5,400,000 bridge at an estimated cost of $4,000,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Blossom has revised the estimated total cost from $4,000,000 to $4,027,000.) Assume that progress billings are non-refundable. Assume that the company uses the completed-contract method. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year (To record cost of construction) (To record progress billings) (To record collections) 2023 (To record revenues) $1,000,000 3,000,000 958,000 909,000 2024 $2,899,440 1,127,560 2,479,000 1,819,000 What would the journal entries be for 2025? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,…
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Indiana Company began a construction project in 2024 with a contract price of $162 million to be received when the project is completed in 2026 During 2024 Indiana incurred $35 million of costs and estimates an additional $15 million of costs to complete the project Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed in 2025, Indiana incurred additional costs of $59 milion and estimated an additional $38 million in costs to complete the project indiana Note: Do not round intermediate calculations. Multiple Choice recognized $911 milion gross profe on the project in 2025 recognized $9.00 million gross prefit on the project in 2025 ced $3000 mon gress profe on the project in 2025
Required information [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,542,000 5,658,000 2,020,000 $ 3,772,000 1,886,000 4,294,000 $ 2,074,600 0 Cash collections during the year 1,810,000 3,800,000 3,686,000 4,390,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal…
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