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The board of directors of Oriole Construction Corp. is meeting to choose between the completed-contract method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Oriole's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Oriole commenced doing business on January 1, 2023. 2. Construction activities for the year ended December 31, 2023, were as follows: Project Total Contract Price Billings through Cash collections 12/31/23 through 12/31/23 A $498,150 275,400 251,100 B 364,500 102,060 102,060 C 384,750 384,750 315,900 D 486,000 194,400 129,600 E 388,800 324,000 324,000 $2,122,200 $1,280,610 $1,122,660 Contract Costs Incurred Through Project 12/31/23 Estimated Additional Costs To Complete Contracts A $413,100 $97,200 B 94,770 221,130 C 283,500 -0- 299,700 234,900 E 259,200 64,800 $1,350,270 $618,030 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2024. Calculate the amount of gross profit (or loss) for the 2023 calendar year, which would be reported under the following methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) The amount reported as gross profit (loss) under the completed-contract method for 2023 is: Projects A $ B C D E $ The amount reported as gross profit (loss) under the percentage-of-completion method (based on estimated costs) for 2023 is: Projects A $ B C D E $

The board of directors of Oriole Construction Corp. is meeting to choose between the completed-contract method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Oriole's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Oriole commenced doing business on January 1, 2023. 2. Construction activities for the year ended December 31, 2023, were as follows: Project Total Contract Price Billings through Cash collections 12/31/23 through 12/31/23 A $498,150 275,400 251,100 B 364,500 102,060 102,060 C 384,750 384,750 315,900 D 486,000 194,400 129,600 E 388,800 324,000 324,000 $2,122,200 $1,280,610 $1,122,660 Contract Costs Incurred Through Project 12/31/23 Estimated Additional Costs To Complete Contracts A $413,100 $97,200 B 94,770 221,130 C 283,500 -0- 299,700 234,900 E 259,200 64,800 $1,350,270 $618,030 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2024. Calculate the amount of gross profit (or loss) for the 2023 calendar year, which would be reported under the following methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) The amount reported as gross profit (loss) under the completed-contract method for 2023 is: Projects A $ B C D E $ The amount reported as gross profit (loss) under the percentage-of-completion method (based on estimated costs) for 2023 is: Projects A $ B C D E $

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 11P
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The board of directors of Oriole Construction Corp. is meeting to choose between the completed-contract method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Oriole's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Oriole commenced doing business on January 1, 2023. 2. Construction activities for the year ended December 31, 2023, were as follows: Project Total Contract Price Billings through Cash collections 12/31/23 through 12/31/23 A $498,150 275,400 251,100 B 364,500 102,060 102,060 C 384,750 384,750 315,900 D 486,000 194,400 129,600 E 388,800 324,000 324,000 $2,122,200 $1,280,610 $1,122,660 Contract Costs Incurred Through Project 12/31/23 Estimated Additional Costs To Complete Contracts A $413,100 $97,200 B 94,770 221,130 C 283,500 -0- 299,700 234,900 E 259,200 64,800 $1,350,270 $618,030 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2024.
Transcribed Image Text:The board of directors of Oriole Construction Corp. is meeting to choose between the completed-contract method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Oriole's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Oriole commenced doing business on January 1, 2023. 2. Construction activities for the year ended December 31, 2023, were as follows: Project Total Contract Price Billings through Cash collections 12/31/23 through 12/31/23 A $498,150 275,400 251,100 B 364,500 102,060 102,060 C 384,750 384,750 315,900 D 486,000 194,400 129,600 E 388,800 324,000 324,000 $2,122,200 $1,280,610 $1,122,660 Contract Costs Incurred Through Project 12/31/23 Estimated Additional Costs To Complete Contracts A $413,100 $97,200 B 94,770 221,130 C 283,500 -0- 299,700 234,900 E 259,200 64,800 $1,350,270 $618,030 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2024.
Calculate the amount of gross profit (or loss) for the 2023 calendar year, which would be reported under the following methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) The amount reported as gross profit (loss) under the completed-contract method for 2023 is: Projects A $ B C D E $ The amount reported as gross profit (loss) under the percentage-of-completion method (based on estimated costs) for 2023 is: Projects A $ B C D E $
Transcribed Image Text:Calculate the amount of gross profit (or loss) for the 2023 calendar year, which would be reported under the following methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) The amount reported as gross profit (loss) under the completed-contract method for 2023 is: Projects A $ B C D E $ The amount reported as gross profit (loss) under the percentage-of-completion method (based on estimated costs) for 2023 is: Projects A $ B C D E $
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