Using the following information for a project, prepare a work in progress schedule to answer the questions that follow • Contract Amount: $858,750 • Original Estimated Cost: $815,000 • Billed to Date: $295,000 • Payments Received to Date: $265,500 • Cost incurred to Date: $250,000 • Estimated Cost to Complete: $575,000 • Cost Paid to Date: $180,000 Provide Answers to the following questions. Round all dollar answers to the nearest whole dollar (i.e. $215,850) and round all percentages to the nearest hundredth (i.e. 15.24%) • Current Re-estimated Total Cost: • Estimated Gross Profit at Completion: • Percentage of Completion: • Total Gross Profit (Loss) to Date: • Amount Earned to Date: • Over Billings: • Under Billings: Remaining Billings: • Job Borrow:

Using the following information for a project, prepare a work in progress schedule to answer the questions that follow • Contract Amount: $858,750 • Original Estimated Cost: $815,000 • Billed to Date: $295,000 • Payments Received to Date: $265,500 • Cost incurred to Date: $250,000 • Estimated Cost to Complete: $575,000 • Cost Paid to Date: $180,000 Provide Answers to the following questions. Round all dollar answers to the nearest whole dollar (i.e. $215,850) and round all percentages to the nearest hundredth (i.e. 15.24%) • Current Re-estimated Total Cost: • Estimated Gross Profit at Completion: • Percentage of Completion: • Total Gross Profit (Loss) to Date: • Amount Earned to Date: • Over Billings: • Under Billings: Remaining Billings: • Job Borrow:

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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Required information [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year $ 2,542,000 5,658,000 2,020,000 $ 3,772,000 1,886,000 4,294,000 $ 2,074,600 0 Cash collections during the year 1,810,000 3,800,000 3,686,000 4,390,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the necessary journal…
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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
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,100,000 $ 2,450,000 $ 2,695,000 Estimated costs to complete as of year-end 4,900,000 2,450,000 0 Billings during the year 2,200,000 2,350,000 5,450,000 Cash collections during the year 1,900,000 2,300,000 5,800,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).2-c. In the journal below, complete the necessary journal entries for the year 2023…
1. Prepare a schedule showing the revenue, cost and gross profit earned each year using thepercentage of completion method, using the engineer’s estimate as a measure ofcompletion.2. Prepare all journal entries required to reflect the contract3. Prepare journal entries for 2020 assuming zero profit method is used.
The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to dato December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are: Select one: a. Current Liability of $1,500 O b. Current Liability of $200 O c. Current Asset of $1,500 d. Current Liability of $875
what are the answers for 66 to 70?
Would you please help me understand how my answers are incorrect? I have been looking at this for an hour.Thank you.
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The following was the expenditure on a contract for $600,000 Material $120,000Wages $164,000 Plant $ 20,000Overheads $8,600Cash received on account of the contract was $240,000 being 80% of the work certified. The Value of material in hand was $10,000. The plant has undergone 20% depreciation. Calculation the profit on this incomplete contract by preparing a contract account.
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,523,000 $ 3,177,000 $ 1,980,000 Estimated costs to complete as of year-end 6,177,000 1,800,000 0 Billings during the year 2,070,000 3,630,000 4,300,000 Cash collections during the year 1,835,000 3,400,000 4,765,000 Westgate recognizes revenue over time according to percentage of completion. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
Nadeem BSC is a civil engineering company. It started work on to civil engineering projects during the year ended 31 December 2020. The nature of both contracts is that the customer controls the asset as the project goes forward. Work is certified by a surveyor as performance obligations are completed. The following figures relate to those projects at the end of the reporting period. Qadim Bypass Hidd Mall BD’000 BD’000 Contract Price 18,000 16,000 Costs incurred to date 2,800 5,800 Estimated costs to completion 11,200 10,400 Value of work certified to date 5,600 6,000 Progress billing 5,200 6,800 An old disused oil well has been discovered under the site for the Hidd Mall and the costs of dealing with this have been taken into account in the calculation of estimated costs to completion. Nadeem BSC’s lawyers are reasonably confident that the customer will have to bear the additional costs which will be incurred in stabilising…