Homework Help is Here – Start Your Trial Now!
Business
Accounting
Star Construction Corp. has a contract to construct a building for $10,890,200. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,817,800. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $134,200. Total construction costs incurred in each year were as follows: 20x5 20x6 20x7 Billings (and cash collections) each year were as follows: 20x5 20x6 20x7 $2,685,600 $4,476,000 $1,790,400 20X5 20x6 20x7 Total $2,287,500 $4,873,400 $3,729,300 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round Intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit

Star Construction Corp. has a contract to construct a building for $10,890,200. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,817,800. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $134,200. Total construction costs incurred in each year were as follows: 20x5 20x6 20x7 Billings (and cash collections) each year were as follows: 20x5 20x6 20x7 $2,685,600 $4,476,000 $1,790,400 20X5 20x6 20x7 Total $2,287,500 $4,873,400 $3,729,300 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round Intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

H-6

Star Construction Corp. has a contract to construct a building for $10,890,200. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,817,800. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $134,200. Total construction costs incurred in each year were as follows: 20x5 20x6 28X7 Billings (and cash collections) each year were as follows: 20x5 20X6 20x7 $2,685,600 $4,476,000 $1,790,400 20X5 20X6 20X7 Total $2,287,500 $4,873,400 $3,729,300 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses Inputs to measure progress. (Round Intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit
Transcribed Image Text:Star Construction Corp. has a contract to construct a building for $10,890,200. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,817,800. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $134,200. Total construction costs incurred in each year were as follows: 20x5 20x6 28X7 Billings (and cash collections) each year were as follows: 20x5 20X6 20x7 $2,685,600 $4,476,000 $1,790,400 20X5 20X6 20X7 Total $2,287,500 $4,873,400 $3,729,300 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses Inputs to measure progress. (Round Intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit
Expert Solution
steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Long-Term contracts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS