Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0 for amounts.)Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0 for amounts.) Problem 6-9Blossom Construction Company has entered into a non-cancellable contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $576,000 and willtake three years to construct. The complex will be billed to the purchasing company at $864,000. The following data pertain to the construction period.201720182019Costs to date$259,200$432,000$585,600Estimated costs to complete316,800144,000Progress billings to date (non-refundable)259,200528,000864,000Cash collected to date230,400480,000864,000x Your answer is incorrect. Try again.Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0for amounts.)201720182019Gross profit recognized164,700109,80079,300 Z Your answer is partially correct. Try again.Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0 foramounts.)201720182019Gross profit recognized353,800Question Attempts: 1 of 5 usedSUBMIT ANSWERSAVE FOR LATER

Contract costing: Contract costing is that form of specific order costing that applies where work is…

Answered: Z Your answer is partially correct. Try…

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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Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0 for amounts.)

Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0 for amounts.)

Problem 6-9
Blossom Construction Company has entered into a non-cancellable contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $576,000 and will
take three years to construct. The complex will be billed to the purchasing company at $864,000. The following data pertain to the construction period.
2017
2018
2019
Costs to date
$259,200
$432,000
$585,600
Estimated costs to complete
316,800
144,000
Progress billings to date (non-refundable)
259,200
528,000
864,000
Cash collected to date
230,400
480,000
864,000
x Your answer is incorrect. Try again.
Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0
for amounts.)
2017
2018
2019
Gross profit recognized
164,700
109,800
79,300

Z Your answer is partially correct. Try again.
Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period. (Do not leave any answer field blank. Enter 0 for
amounts.)
2017
2018
2019
Gross profit recognized
353,800
Question Attempts: 1 of 5 used
SUBMIT ANSWER
SAVE FOR LATER

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