Wildhorse Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.5 million beginning September 1, 2023, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2025. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date (non-refundable) Cash collected to date (a) 2023 2024 $645,000 $1,496,250 498.750 727,000 2,000,000 545.000 1.853,000 1.505.000 2025 $2,050,000 0 2.500.000 2.500,000 Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45) Round answers to 0 decimal places, eg. 5,275)

Q: What does the blank section post mean or what goes there

A: Post Column : It is the Column through which book keeper identify whether journal entries are…

Q: Define terminal value

A: Terminal value is the value of the project or the security at the end of a specified future date.…

Q: A B C D E A B C D E Type of Quality Characteristic Consistency Type of Quality Characteristic #…

A: A.   It can be seen that an unit of Chocolate Chip Cookies is valued at $9.56. However, the same…

Q: answer is incorrect, pls recheck

A: Statement of Comprehensive Income: Comprehensive income is a measure of the changes in owners'…

Q: describe conditions that are conducive to issuing low-quality, or even fraudulent, fi…

A: Financial reports are issued at the end of the year that shows the status of the Company.

Q: State the meaning of incomplete records?

A: Accounting refers to the process through which the financial transactions related to a business are…

Q: Define management by exception.

A: Management by exceptions: Management by exceptions determines that the managers should not focus if…

Q: What exactly are reversing entries, and why do we need them?

A: Journal entry is the entry which is made at the date on which the transaction which relates to the…

Q: How can forwardrates be used for hedging purposes?

A: SOLUTION:- Risk management is the main stimulus for forward contracts. Forward contract is a…

Q: Define call protection

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: Gadsen Company's quality cost report is to be based on the following data: Maintenance of test…

A: A quality cost report details the costs related to internal and external failures, prevention, and…

Q: Describe about the deferrals? Explain it in detail.

A:

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.