ple Take Construction Co. began construction of a project in 2017 for ject is to be completed in 4 years or in the year 2021. The following are t ject 2017 2018 Costs incurred to date 2160.000 4.500.000
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![How much is the Gross Profit/Loss Realized in 2018?
Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The
project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction
project:
2017
2018
2019
Costs incurred to date
2160,000
4,500,000
7,520,000
Estimated cost to complete
Progress Billings to date
Cash Collections for the year
6,840,000
5,500,000
1,880,000
2304,000
4,320,000
7,680,000
1,728,000
3,240,000
5,760,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ffc59ab-753b-4631-88cf-f78ee5d208a5%2Fe8e6699a-f0f0-4953-b078-96aa1b0b6c91%2Fgb7fw1q_processed.jpeg&w=3840&q=75)
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- Roger Inc. began work in 2021 on a contract for $8,400,000. Other data are as follows: 2021 2022 Costs incurred to date $3,600,000 $5,600,000 Estimated costs to complete 2,400,000 — Billings to date 2,800,000 8,400,000 Collections to date 2,000,000 7,200,000 Roger uses the percentage-of-completion method. Calculate the gross profit to be recognized in 2021.49. 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 receivable balance as of December 31, 2022?Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2018 and was completed in 2020. The following is a series of independent situations, numbered 1through 6, involving differing costs for the project. All costs are stated in thousands of dollars.Costs Incurred During YearEstimated Costs to Complete(As of the End of the Year)Situation 2018 2019 2020 2018 2019 20201 1,500 2,100 900 3,000 900 —2 1,500 900 2,400 3,000 2,400 —3 1,500 2,100 1,600 3,000 1,500 —4 500 3,000 1,000 3,500 875 —5 500 3,000 1,300 3,500 1,500 —6 500 3,000 1,800 4,600 1,700 —Required:Copy and complete the following table:Gross Profit (Loss) RecognizedOver Time Upon CompletionSituation 2018 2019 2020 2018 2019 2020123456
- 4. In 2016, Omega Construction began work on a contract with a price of $850,000 and estimated costs of $595,000. Data for each year of the contract are as follows: Costs incurred during the year $238,000 Estimated costs to complete Partial billings Collections 2016 2017 2018 $319,600 $105,000 357,000 139,400 -0- 260,000 210,000 380,000 240,000 200,000 410,000 Assuming the performance obligation is satisfied over time, what would be the gross profit in 2016? a. $102,000 b. $260,000 c. $255,000 d. $425,000During 2020, Skysong 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 $383,800 $850,200 $1,074,000 Estimated costs to complete 626,200 239,800 –0– Billings to date 300,000 899,000 1,620,000 Collections to date 267,000 816,000 1,429,000 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 Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.) Compute the amount of gross…(Recognition of Profit on Long-Term Contract) Shanahan Construction Company has entered into a contract beginning January 1, 2017, 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. 2017 2018 2019 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.
- 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…During 2020, Marin 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 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 eTextbook and Media List of Accounts Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit %24 %24 %24Cullumber Construction Co. uses the percentage-of-completion method. In 2024, Cullumber began work on a contract for $23200000; it was completed in 2025. The following cost data pertain to this contract: Year Ended December 31 2024 2025 Cost incurred during the year $8736000 $5720000 Estimated costs to complete at the end of year 5824000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is ○ $3456000. ○ $8744000. $2920000. $3560000.
- 8. How much is the Gross Profit/Loss Realized in 2018? * Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project 2017 2018 2019 Costs inenered to dnte Estimsted cost to complete Progess Billings to dnte Cash Collectiona for the year 2160,000 4,500,000 7,520,000 6840,000 5,500,000 1,690, 000 2,304,000 4,320,000 7,680,000 1,728.000 3,240,000 5,760,000 9. How much is the Gross Profit/Loss Realized in 2019? * 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 10,200,000 10,200,000 9,800,000 8,760,000…In 2020, Zeta Construction Corp. began work on a contract for $3,700,000. Other details follow: 2020 Costs incurred during the year $1,800,000 Estimated costs to complete as of December 31 1,200,000 Billings during the year1,650,000 Collections during the year 975,000 Zeta uses the percentage-of-completion method. For calendar 2020, Zeta should report gross profit of?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 1. Calculate the following amounts for each method: 2. Completed Contract Percentage of Completion 2022 2023 2022 2023 Gross Profit $ ? $ ? $ ? $ ? Construction in progress year - end balance. $ ? $ ? $ ? $ ? Costs in excess of billi\table[[, \table[[Completed], [Contract]], \table[[Percentage of], [Completion]]], [, 2022, 2023, 2022, 2023], [Gross Profit,$?, $?, $ ?, $?ngs (Billings in excess of costs) $ ? $ ? $ ? $ ?
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