Montgomery Industries spent $690,000 in 2023 on a construction project to build a library. Montgomery also capitalized $34,500 of interest on the project in 2023. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2024. Additional expenditures in 2024 were as follows: February 28 April 30 July 1 September 30 $ 98,100 188,100 44,100 72,100 Required: Determine the completed cost of the library. Note: Do not round intermediate calculations. Completed cost of the library wwwwwwwwwwwww

Montgomery Industries spent $690,000 in 2023 on a construction project to build a library. Montgomery also capitalized $34,500 of interest on the project in 2023. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2024. Additional expenditures in 2024 were as follows: February 28 April 30 July 1 September 30 $ 98,100 188,100 44,100 72,100 Required: Determine the completed cost of the library. Note: Do not round intermediate calculations. Completed cost of the library wwwwwwwwwwwww

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In 2021, the Kokosing Construction Company of Columbus, Ohio entered into a contract to construct a road for Franklin County for $20,000,000. The road was completed in 2023. Information pertaining to the contract is provided below: 2021 2022 2023 Costs incurred during the year Estimated costs to complete as of year end Billings during the year Cash Collections during the year $4,800,000 $7,200,000 $4,400,000 11,200,000 4,000,000 4,000,000 8,000,000 8,000,000 3,600,000 7,200,000 9,200,000 Kokosing recognizes revenue over time according to percentage of completion. Required: 1. Compute the amount of revenue and gross profit to be recognized in 2021, 2022, and 2023. 2. Prepare the necessary journal entries for 2021 and 2022. Use the following accounts for your journal entries - "Construction in Progress", "Cash, Materials etc.", "Accounts Receivable", "Billings on Construction in Progress", "Cash", "Cost of Construction", and "Revenue from Long-term contracts". 3. Prepare a partial…
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,880,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 426,000 $ 1,180,000 Estimated costs to complete 994,000 0 Billings during the year 440,000 1,440,000 Cash collections during the year 340,000 1,540,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.
8
Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2023, a single long-term project was begun, which continued through 2025. Information on the project follows: 2023 $100,000 2024 $300,000 12/31 Accounts Receivable balance 125,000 162,000 Construction expenses for year Gross Profit recognized in year Billings during year 52,000 100,000 100,000 420,000 The 12/31/24 CIP balance is: Select one: a.$139,000 b.$452,000 c.$187,000 d.$152,000 e.$439,000
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 $1,400,000 2025 2026 $3,150,000 $2,695,000 Cost incurred during the year Estimated costs to complete as of year-end 5,600,000 2,450,000 0 Billings during the year 1,000,000 3,550,000 5,450,000 Cash collections during the year 800,000 2,600,000 6,600,000 Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
In 2021, 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 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year 2,090,000 2,838,000 5,072,000 Cash collections during the year 1,845,000 2,900,000 5,255,000 Westgate recognizes revenue over time according to percentage of completion. complete the…
Do not give image format
In 2021, 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 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 3,344,000 $ 3,960,000 $ 1,645,600 Estimated costs to complete as of year-end 5,456,000 1,496,000 0 Billings during the year 2,800,000 4,504,000 2,696,000 Cash collections during the year 2,600,000 4,400,000 3,000,000 Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time.Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries…
What amount of interest is capitalized on December 31, 2020? A. P1,200,000 B. P1,000,000 C. P600,000 D. P400,000
Dhapa Rakes
1. At the Poly Novo 2023 Annual General Meeting (" AGM) heid on 3 November, 2023 they revealed plans to construct a new manufacturing facility adjacent to its existing facility, PolyNovo has already performed a substantial amount of design analysis related to the new facility at a cost of $70, 000. The capital expenditure of $845, 000 associated with the construction of the new facility and the annual operating expenses are substantial. 2. The capital cost of the new facility is expected to be $845, 000 today. PolyNovo must also purchase $300, 000 of plant and equipment ("P&E"). At the end of FY23 PolyNovo had" $46.8m of cash on hand and it plans to use S0.3 million of their cash balance to pay for the building which will reduce the capital cost to just $545,000. If the new facility is built, a piece of obsolete manufacturing equipment must be sold. The equipment had a total capital cost in 2020 of $220,000 and is being depreciated at 511,000 per annum for the years 2021 to 2030…
Sagar