Sandhill Construction Company began work on a $402,000 construction contract in 2020. During 2020, Sandhill incurred costs of $252,000, billed its customer for $210,500, and collected $177,000. On December 31, 2020, the estimated additional costs to complete the project total $162,405. Prepare Sandhill's journal entry to record profit or loss, if any, using (a) the percentage- of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the

Sandhill Construction Company began work on a $402,000 construction contract in 2020. During 2020, Sandhill incurred costs of $252,000, billed its customer for $210,500, and collected $177,000. On December 31, 2020, the estimated additional costs to complete the project total $162,405. Prepare Sandhill's journal entry to record profit or loss, if any, using (a) the percentage- of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the

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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Sheridan Construction Co. uses the percentage-of-completion method. In 2024, Sheridan began work on a contract for $21300000; it was completed in 2025. The following cost data pertain to this contract: Cost incurred during the year Estimated costs to complete at the end of year Year Ended December 31 $8516000. $2990000. $3680000. $3684000. 2024 $7254000 4836000 2025 $5530000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is
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G Company agreed to build a building for K Corporations. The contract price is $4,200,000. Data pertaining to expected and actual costs incurred for building is providing below: Year Costs 2017 $740,000 2018 $1,650,000 2019 $750,500 G Company completed the building in the year 2019. Calculate the amount of net income from 2017 to 2019. (Use the percentage-of-completion method and round all the percentages to zero decimal places) Net Income for 2017, 2018, and 2019 are $840,000, $2,120,000, and $1,040,000, respectively. Net Income for 2017, 2018, and 2019 are $268,000, $576,000, and $257,500, respectively. Net Income for 2017, 2018, and 2019 are $249,651, $556,655, and $253,194, respectively. Net Income for 2017, 2018, and 2019 are $830,400, $1,351,500, and $827.880, respectively.
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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.
please provide working i post this que 2nd time
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On February 1, 2023, Sandhill Contractors agreed to construct a building at a contract price of $3,460,000. The total estimated construction costs would be $1,890,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2023 Gross profit/ (loss) 689,850 1,200,150 1,100,000 1,000,000 2023 2024 573050 $1,162,000 $ 2,365,000 913,000 1,890,000 1,750,000 2025 Calculate the gross profit / (loss) that should be recognized for 2023, 2024, and 2025 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentage complete to 1 decimal place, e.g. 15.2% and final answers to O decimal places, e.g. 5,125.) 2024 -0- 3,460,000 2,950,000 -107450 $ LA 2025 40450