I need the answer as soon as possible Question 3Penny's Construction has been contracted to build a small indoor skate park. The contract was signed inNovember and construction began in December. The total price for the contract is $12 million. The jobwas complete December 203. Penny has a December 31 year end.20X120X220X3$ 1,400,0007,600,0001,000,000800,000$ 5,600,0007,000,0005,200,0003,000,000Accumulated costs to date$ 12,500,000Estimated costs to complete projectCustomer billings to date12,000,00010,500,000Cash collected to dateRequired:a) Calculate the amount of gross profit to be recognized each year using the percentage-of-completion method.b) Show how the details of this contract would be disclosed on the Statement of Financial Positionand Statement of Financial Performance in 20X2.

The percentage of completion method is an accounting method in which the revenues and expenses of…

Question 3 Penny's Construction has been contracted to build a small indoor skate park. The contract was signed in November and construction began in December. The total price for the contract is $12 million. The job was complete December 20X3. Penny has a December 31 year end. 20X1 20X2 20X3 $ 5,600,000 7,000,000 5,200,000 3,000,000 $ 12,500,000 $ 1,400,000 7,600,000 1,000,000 800,000 Accumulated costs to date Estimated costs to complete project Customer billings to date 12,000,000 10,500,000 Cash collected to date Required: a) Calculate the amount of gross profit to be recognized each year using the percentage-of- completion method. b) Show how the details of this contract would be disclosed on the Statement of Financial Position and Statement of Financial Performance in 20X2.

Question 3 Penny's Construction has been contracted to build a small indoor skate park. The contract was signed in November and construction began in December. The total price for the contract is $12 million. The job was complete December 20X3. Penny has a December 31 year end. 20X1 20X2 20X3 $ 5,600,000 7,000,000 5,200,000 3,000,000 $ 12,500,000 $ 1,400,000 7,600,000 1,000,000 800,000 Accumulated costs to date Estimated costs to complete project Customer billings to date 12,000,000 10,500,000 Cash collected to date Required: a) Calculate the amount of gross profit to be recognized each year using the percentage-of- completion method. b) Show how the details of this contract would be disclosed on the Statement of Financial Position and Statement of Financial Performance in 20X2.

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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