On February 1, 2023, Blossom Contractors agreed to construct a building at a contract price of $2,800,000. The total estimated construction costs would be $1,500,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date Gross profit/(loss) 2023 $ $ 525,000 975,000 1,100,000 1,000,000 $ 2023 2024 825,000 825,000 1,500,000 1,750,000 $ 2025 $2,200,000 Calculate the gross profit/ (loss) that should be recognized for 2023, 2024, and 2025 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentage complete to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 5,125.) 2024 -0- 2,800,000 2,950,000 $ 2025
On February 1, 2023, Blossom Contractors agreed to construct a building at a contract price of $2,800,000. The total estimated construction costs would be $1,500,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date Gross profit/(loss) 2023 $ $ 525,000 975,000 1,100,000 1,000,000 $ 2023 2024 825,000 825,000 1,500,000 1,750,000 $ 2025 $2,200,000 Calculate the gross profit/ (loss) that should be recognized for 2023, 2024, and 2025 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentage complete to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 5,125.) 2024 -0- 2,800,000 2,950,000 $ 2025
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
jay
Transcribed Image Text:On February 1, 2023, Blossom Contractors agreed to construct a building at a contract price of $2,800,000. The total estimated
construction costs would be $1,500,000 and the project would be finished in 2025. Information relating to the costs and billings for
this contract is as follows:
Total costs incurred to date
Estimated costs to complete
Customer billings to date
Collections to date
$
Gross profit/ (loss)
2023
525,000
975,000
1,100,000
1,000,000
$
2023
2024
825,000
825,000
1,500,000
1,750,000
2025
$ 2,200,000
2024
-0-
Calculate the gross profit/ (loss) that should be recognized for 2023, 2024, and 2025 using the percentage completion method. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentage
complete to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 5,125.)
2,800,000
2,950,000
2025
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education