Project financial data Candy store project Toy store project Ice rink project Contract amount $5,000,000 * $5,000,000 $5,000,000 Original estimated cost 4,700,000 4,800,000 4,850,000 Billed to date 1,700,000 1,700,000 1,700,000 Payments received to date 1,530,000 1,530,000 1,530,000 Cost incurred to date 1,450,000 1,350,000 1,550,000 Forecasted cost to complete 3,500,000 3,400,000 3,100,000 Costs paid to date 1,400,000 1,400,000 1,400,000

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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Based on the project data presented in the table, calculate for each of the projects the revenue that would be recognized using (a) cash and (b) straight accrual methods. In addition, calculate (c) the revenue using the percentage-of-completion method and the gross profit to date using the percentage-of-completion method. 

 

Project
financial data
Candy store
project
Toy store
project
Ice rink
project
Contract amount
$5,000,000
* $5,000,000
$5,000,000
Original estimated cost
4,700,000
4,800,000
4,850,000
Billed to date
1,700,000
1,700,000
1,700,000
Payments received to date
1,530,000
1,530,000
1,530,000
Cost incurred to date
1,450,000
1,350,000
1,550,000
Forecasted cost to complete
3,500,000
3,400,000
3,100,000
Costs paid to date
1,400,000
1,400,000
1,400,000
Transcribed Image Text:Project financial data Candy store project Toy store project Ice rink project Contract amount $5,000,000 * $5,000,000 $5,000,000 Original estimated cost 4,700,000 4,800,000 4,850,000 Billed to date 1,700,000 1,700,000 1,700,000 Payments received to date 1,530,000 1,530,000 1,530,000 Cost incurred to date 1,450,000 1,350,000 1,550,000 Forecasted cost to complete 3,500,000 3,400,000 3,100,000 Costs paid to date 1,400,000 1,400,000 1,400,000
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