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 indiaria 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 $50 million and estimated an additional $38 million in costs to complete the project indiana Note: Do not round intermediate calculations Multiple Choice recognized $911 maan gross profe on the presin 2025 recognized $300 miten gross prefe on the project in 2025 od $3000 on gross profe on the project in 2025 cognited 528 50 min gress prof the project in 2025

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 indiaria 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 $50 million and estimated an additional $38 million in costs to complete the project indiana Note: Do not round intermediate calculations Multiple Choice recognized $911 maan gross profe on the presin 2025 recognized $300 miten gross prefe on the project in 2025 od $3000 on gross profe on the project in 2025 cognited 528 50 min gress prof the project in 2025

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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Headland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to complete the project total $155,835. Prepare Headland's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit (a) (b)
Diamond Construction which has a calendar year end, has entered into a non-cancellable fixed priced contract of $4,200,000 beginning May 1, 2019 to build a road for a municipality. It has been estimated that the road will be complete by April 2021. The following data pertains to the construction period: 2019 2020 2021 Costs during the year 1,850,000 1,700,000 500,000 Estimated costs to complete 2,050,000 700,000 - Total Required Assuming the company uses the percentage of completion method based on input, calculate and record the revenue and profit for each year (i.e. prepare only the annual journal entry reporting the revenue / profit for the year).
Triple Take Construction Co, began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project. 2018 4,500,000 5,500,000 4,320,000 3,240,000 2019 7,520,000 1,880,000 7,680,000 5,760,000 2017 Costs Incurred to Date Estimated Costs to Complete Progress Billings to Date Cash Collection for the Year 2,160,000 6,840,000 | 2,304,000 1,728,000 How much is the gross profit/loss realized in 2018?
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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: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year 2024 $ 2,523,000 6,177,000 2,070,000 2025 $ 3,177,000 1,800,000 3,630,000 2026 $ 1,980,000 0 Cash collections during the year 1,835,000 3,400,000 4,300,000 4,765,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 5 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. Costs incurred during the year Estimated costs to complete as of year-end 2024 $…
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