Detailed answer of 1 and 2 please. Will rate generously. Maya Co. which is a publicly traded company started to build a 30-story Condo building in May2018. The project will take 5 years to finish, and the total contract price is $80,000,000. Thefollowing table provides information about the cost and revenue of the contract.20182019202020212022$15,400,000$14,000,000$29,000,000$10,000,000 4,000,000Costs incurredduring the yearEstimated costs45,000,000$38,500,000$22,000,0008,000,000to complete theprojectBillings15,000,000$16,000,000$20,000,000$19,000,000 10,000,000Required-1) Assume the company uses the percentage of completion method based on input,calculate and record the revenue and profit for each year.2) Determine how this contract will be presented in the balance sheets of 2019.

Answered: Image /qna-images/answer/1fb8df9e-9af5-4f80-bf10-fee66ea06763.jpg

Maya Co. which is a publicly traded company started to build a 30-story Condo building in May 2018. The project will take 5 years to finish, and the total contract price is $80,000,000. The following table provides information about the cost and revenue of the contract. 2018 2019 2020 2021 2022 Costs incurred during the year $10,000,000 4,000,000 $15,400,000 $14,000,000 $29,000,000 Estimated costs 45,000,000 $38,500,000 $22,000,000 8,000,000 to complete the project Billings 15,000,000 $16,000,000 $20,000,000 $19,000,000 10,000,000

Maya Co. which is a publicly traded company started to build a 30-story Condo building in May 2018. The project will take 5 years to finish, and the total contract price is $80,000,000. The following table provides information about the cost and revenue of the contract. 2018 2019 2020 2021 2022 Costs incurred during the year $10,000,000 4,000,000 $15,400,000 $14,000,000 $29,000,000 Estimated costs 45,000,000 $38,500,000 $22,000,000 8,000,000 to complete the project Billings 15,000,000 $16,000,000 $20,000,000 $19,000,000 10,000,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8MC: Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master...

See similar textbooks

Similar questions

ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?
Please help me. Thankyou.
Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $270,000 $450,000 $610,000 Estimated costs to complete 330,000 150,000 –0– Progress billings to date 270,000 550,000 900,000 Cash collected to date 240,000 500,000 900,000 Instructions a. Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. b. Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.
Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $609,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $266,640 $412,080 $617,000 Estimated costs to complete 339,360 193,9200 –0– Progress billings to date 270,000 545,000 896,000 Cash collected to date 240,000 495,000 896,000 A/ Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross profit recognized in 2022: B/ Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross…
How much is the Gross Profit/Loss Realized in 2018?
Paul Constructions has entered into a contract beginning January 1, 2020, to build a pool. It has been estimated that the pool will cost P300,000, and will take three years to construct. The pool will be billed to the purchasing at P450,000. The following data pertain to the construction period. 2020 135,000 165,000 2021 210,000 90,000 2022 0 Cost to date: Estimated cost to complete. Progress billing to date. Cash collected to date 135.000 120.000 275.000 250,000 450,000 450.000 During 2020, Costs incurred include P15,000 standard materials stored at the site to be used in 2022 to complete the project. Using the percentage of completion method, compute the recognize gross profit for 2022: a. 52,500 b. 45,000 c. 97.500 d. 150,000 2. The CIP net of Progress billing is a. 27.500 current liability b. 32,500 current asset c. 167,500 current asset. d. 102,500 current liability
Swifty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $894,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $263,120 $412,620 $607,000 Estimated costs to complete 334,880 185,380 –0– Progress billings to date 272,000 545,000 894,000 Cash collected to date 242,000 495,000 894,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated…
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.
i need the answer quickly
4
Answer the problem with solution
Beck Construction Company began work on a new building project on January 1, 2023. The project is to be completed by December 31, 2025, for a fixed price of $159 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff: Years 2023 2024 2025 Actual costs incurred in each year $ 43 million $ 71 million $ 48 million Years 2023 2024 2025 Required: What amount of gross profit (or loss) would Beck record on this project in each year, assuming that Beck recognizes revenue for this project upon completion of the project? Note: Enter "None" if there is no requirement of recognizing profit or loss. Loss amounts should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Gross Profit (or Loss) recognized Gross profit Gross profit Gross profit Estimated remaining costs to complete t project (measured at December 31 of each year) $ 86 million. $ 71…