Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date (a) $256,280 339.720 270,000 240,000 Gross profit recognized in 2025 2025 Gross profit recognized in 2026 Gross profit recognized in 2027 S $ 2026 $ $429,120 166,880 555,000 505,000 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.) 2027 $606,000 -0- 902,000 902,000
Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date (a) $256,280 339.720 270,000 240,000 Gross profit recognized in 2025 2025 Gross profit recognized in 2026 Gross profit recognized in 2027 S $ 2026 $ $429,120 166,880 555,000 505,000 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.) 2027 $606,000 -0- 902,000 902,000
Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 35E
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![Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been
estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company
at $902,000. The following data pertain to the construction period.
Costs to date
Estimated costs to complete
Progress billings to date
Cash collected to date
(a)
$256,280
339,720
270,000
Gross profit recognized in 2025
Gross profit recognized in 2026
2025
Sok and Media
240,000
Gross profit recognized in 2027
$
GA
$
LA
2026
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 O. Do not leave any fields blank.)
5
$429,120
166,880
555,000
505,000
2027
$606,000
902,000
902.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b52f557-3b61-4a6d-a293-05da09ea3c21%2Fda763324-6e94-4d43-a3bb-079e2b186a15%2Fgkyvy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been
estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company
at $902,000. The following data pertain to the construction period.
Costs to date
Estimated costs to complete
Progress billings to date
Cash collected to date
(a)
$256,280
339,720
270,000
Gross profit recognized in 2025
Gross profit recognized in 2026
2025
Sok and Media
240,000
Gross profit recognized in 2027
$
GA
$
LA
2026
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 O. Do not leave any fields blank.)
5
$429,120
166,880
555,000
505,000
2027
$606,000
902,000
902.000
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