par any com During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Darwin sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date 2023 Gross profit/(loss) Estimated costs to complete 3,150,000 $600,000 $2,100,000 $4,100,000 2024 2023 2,100,000 2025 Calculate the amount of gross profit or loss that should be recognized each year under the zero-profit method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) 72000 -0- 2024 -72000 2025 100000

par any com During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Darwin sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date 2023 Gross profit/(loss) Estimated costs to complete 3,150,000 $600,000 $2,100,000 $4,100,000 2024 2023 2,100,000 2025 Calculate the amount of gross profit or loss that should be recognized each year under the zero-profit method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) 72000 -0- 2024 -72000 2025 100000

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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Crane Construction Co. uses the percentage-of-completion method. In 2021, Crane began work on a contract for $24475000; it was completed in 2022. The following cost data pertain to this contract: Year Ended December 31 2021 2022 Cost incurred during the year $8350000 $6150000 Estimated costs to complete at the end of year 5739000 If the completed-contract method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be 2021 2022 $9975000. $(411000). $0. $10386000. $10386000. $0. $0. $9975000. O O
Use the percentage-completion method and show all calculations and explanation in detail.
Celestial Holdings Co. began constructing a condominium in January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, Celestial billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction in progress 300,000 ? ? Estimated cost to complete ? ? - Cost incurred 250,00 600,000 112,500 Excess of CIP over PB 25,000 (125,000) How much is the Gross Profit/Loss Realized in 2018? Show your good accounting form. Thank you!
Alpesh bhaliya
During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The following information is available. The contract is non-cancellable. Costs incurred to date Estimated costs to complete Billings to date (non-refundable) Collections to date (a) 2023 2024 $448,000 $924,000 672,000 336,000 1,008,000 907,200 302.400 308,000 0000 2025 $1,198,400 0 1,792,000 1,596,000 Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) nont ROOF
Problem on long-term construction Axcel Construction Company has consistently used the percentage of completion method of recognizing income. During 2020, Axcel entered into a fixed price contract to construct an office building for P10,000,000. Information relating to the contract is as follows: 12/31/2020 12/31/2021 Percentage of completion 25% 65% Estimated total cost at completion-- P7,500,000.00 P 8,000,000.00 Income recognized (cumulative) 500,000.00 1,200,000.00 Required: a. Cost incurred to date, 12/31/2020 b. Cost incurred to date, 12/31/2021 Contract costs incurred during 2021| C.
Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 2019 Costs incurred to date 10,200,000 17,400,000 Estimated Costs to Complete 10,200,000 4,350,000 Billings Made 9,800,000 16,350,000 Cash Collections 8,760,000 15,000,000 HOW MUCH IS THE GROSS PROFIT/LOSS REALIZED IN 2019?
Answer is $1,800,000. Please explain the reasoning and calculations
During 2020, Teal Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $393,900 $889,380 $1,061,000 Estimated costs to complete 616,100 208,620 -0- Billings to date 303,000 902,000 1,620,000 Collections to date 273,000 814,000 1,418,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 %24 %24
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