On January 1, 2022, Winter Harvest Ltd. started a construction project for $ 4,500,000. Relevant data for 2022 and 2023 are as follows: 2022 2023 Current year construction costs $ 3,300,000 $ 620,000 Estimated remaining costs to complete 600,000 -0- Current year billings 3,100,000 1,400,000 Current year collections 3,000,000 1,500,000 Required Calculate the following amounts for each method: Completed Contract Percentage of Completion 2022 2023 2022 2023 Gross Profit $ ? $ ? $ ? $ ? Construction in progress year-end balance. $ ? $ ? $ ? $ ? Costs in excess of billings (Billings in excess of costs) $ ? $ ? $ ? $ ?
On January 1, 2022, Winter Harvest Ltd. started a construction project for $ 4,500,000. Relevant data for 2022 and 2023 are as follows: 2022 2023 Current year construction costs $ 3,300,000 $ 620,000 Estimated remaining costs to complete 600,000 -0- Current year billings 3,100,000 1,400,000 Current year collections 3,000,000 1,500,000 Required Calculate the following amounts for each method: Completed Contract Percentage of Completion 2022 2023 2022 2023 Gross Profit $ ? $ ? $ ? $ ? Construction in progress year-end balance. $ ? $ ? $ ? $ ? Costs in excess of billings (Billings in excess of costs) $ ? $ ? $ ? $ ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1, 2022, Winter Harvest Ltd. started a construction project for $ 4,500,000. Relevant data for 2022 and 2023 are as follows:
|
2022 |
2023 |
|
|
Current year construction costs |
$ 3,300,000 |
$ 620,000 |
|
Estimated remaining costs to complete |
600,000 |
-0- |
|
Current year billings |
3,100,000 |
1,400,000 |
|
Current year collections |
3,000,000 |
1,500,000 |
Required
- Calculate the following amounts for each method:
|
Completed Contract |
Percentage of Completion |
|||
|
2022 |
2023 |
2022 |
2023 |
|
|
Gross Profit |
$ ? |
$ ? |
$ ? |
$ ? |
|
Construction in progress year-end balance. |
$ ? |
$ ? |
$ ? |
$ ? |
|
Costs in excess of billings (Billings in excess of costs) |
$ ? |
$ ? |
$ ? |
$ ?
|
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