Windsor contribution company uses the percentage solve this accounting questions Windsor Construction Company uses thepercentage-of-completion method of accounting. In2014, Windsor began work on a contract it hadreceived which provided for a contract price of$3,000,000. Other details follow for 2014:Costs incurred during the year $1,400,000Estimated costs to complete as of December 312014, $600,000Billings during the year $1,000,000Collections during the year $900,000What should be the gross profit recognized in2014?- $700,000- $1,000,000- $1,400,000- $2,100,000

To calculate the gross profit recognized in 2014 under the percentage-of-completion method, follow…

Answered: Windsor Construction Company uses the…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 40P

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Archer Construction Company began work on a $420,000 construction contract in 2017. During 2017, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2017, the estimated additional costs to complete the project total $162,000. Prepare Archer’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Sheridan Construction Co. uses the percentage-of-completion method. In 2024, Sheridan began work on a contract for $21300000; it was completed in 2025. The following cost data pertain to this contract: Cost incurred during the year Estimated costs to complete at the end of year Year Ended December 31 $8516000. $2990000. $3680000. $3684000. 2024 $7254000 4836000 2025 $5530000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is
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Haft Construction Company has consistently applied the percentage-of-completion method. On January 10, 2014, Haft began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract: $ 300,000 Gross profit recognized at 12/31/14 Costs incurred 1/01/14 through 12/31/15 Estimated cost to complete at 12/31/15 1,800,000 600,000 In its income statement for the year ended December 31, 2015, what amount of gross profit should Haft report?
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