Homework Answers
| Year 1 | Year 2 | Year 3 | |
| Costs to date (A) | 1,650,000.00 | 4,130,000.00 | 6,000,000.00 |
| Total estimated costs (B) | 5,500,000.00 | 5,900,000.00 | 6,000,000.00 |
| % of completion (A/B) | 30.00% | 70.00% | 100.00% |
Year 1
Contract Cost Dr 16,50,000
To Cash 16,50,000
(Being contract exp incurred)
Contractee Dr 13,20,000
To Contract Revenue 13,20,000
(Being contract revenue booked)
Bank Dr 12,10,000
To Contractee 12,10,000
(Being amount received from contractee)
Year 2
Contract Cost Dr 24,80,000
To Cash 24,80,000
(Being contract exp incurred)
Contractee Dr 19,80,000
To Contract Revenue 19,80,000
(Being contract revenue booked)
Bank Dr 19,25,000
To Contractee 19,25,000
(Being amount received from contractee)
Year 3
Contract Cost Dr 18,70,000
To Cash 18,70,000
(Being contract exp incurred)
Contractee Dr 33,00,000
To Contract Revenue 33,00,000
(Being contract revenue booked)
Bank Dr 31,90,000
To Contractee 31,90,000
(Being amount received from contractee)
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Percentage of Completion and Completed Contact Supplement 01- Overall Profit Year 6,000,000 Costs to Date Estimated...
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Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building...
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Question 3: Percentage of Completion Method (12 marks) On January 1, 2017, Eagle Construction Ltd. started...
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show working and steps to complete Example 6-4: Costs incurred during the year Estimated future costs...
show working and steps to complete
Example 6-4: Costs incurred during the year Estimated future costs Customer billings during the year Collections during the year 1998 1999 2000 560,000 840,000 720.000 1,040,000 700.000 300,000 500,000 1.200,000 *240.000 500,000 1,240,000 The contract price is $2 million Prepare journal entries 1. when recognizing revenue under completed contract li. when recognizing revenue over time according to percentage-of-completion Percentage completed: Is there an expected overall loss at the end of any year?
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Exercise 18-36 Coronado Construction Company uses the percentage-of-completion method of accounting. In 2017, Coronado began work...
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Riverbed Construction Company uses the percentage-of-completion method of accounting. In 2017, Riverbed began work under contract...
Riverbed Construction Company uses the percentage-of-completion
method of accounting. In 2017, Riverbed began work under contract
#E2-D2, which provided for a contract price of $2,195,000. Other
details follow:
2017
2018
Costs incurred during the year
$695,310
$1,404,000
Estimated costs to complete, as of December 31
921,690
–0–
Billings to date
426,000
2,195,000
Collections during the year
352,000
1,475,000
What portion of the total contract price would be recognized as
revenue in 2017? In 2018?
Revenue recognized in 2017
$
Revenue...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin began work under contract E2-02, which provided for a contract price of 52,195,000. Other details follow 2017 2018 Costs incurred during the year 5695,310 $1,404,000 Estimated costs to complete, as of December 31921,690 0 Billings to date 426,000 2,195,000 Collections during the year 352,000 1,475,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in...
Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2020, Hamilton began work on the...
Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000. Other details follow: 20XO 20X1 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 20x0? 2,195,000 878,000 1,097,500 427,000 343,000
C) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method...
C) Compute the amount of gross profit to be recognized
each year, assuming the completed-contract method is
used.
During 2017, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2019. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 $434,300 575,700 301,000 271,000 2018 $859,560 242,440 897,000 817,000 2019 $1,073,000 -0- 1,610,000 1,428,000 Prepare all necessary journal entries for 2018. (Credit...
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Ex. 18-127-Percentage-of-completion and completed-contract methods. On February 1, 2012, Marsh Contractors agreed to construct a building at a contract price of $5,400,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2014. Information relating to the costs and billings for this contract is as follows: 2014 2012 $1,500,000 2,500,000 2,200,000 2,000,000 2013 $4,600,000 $2,640,000 1,760,000 4,000,000 3,500,000 Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date -0-...
show working and steps to complete
Example 6-4: Costs incurred during the year Estimated future costs Customer billings during the year Collections during the year 1998 1999 2000 560,000 840,000 720.000 1,040,000 700.000 300,000 500,000 1.200,000 *240.000 500,000 1,240,000 The contract price is $2 million Prepare journal entries 1. when recognizing revenue under completed contract li. when recognizing revenue over time according to percentage-of-completion Percentage completed: Is there an expected overall loss at the end of any year?
Exercise 18-36 Coronado Construction Company uses the percentage-of-completion method of accounting. In 2017, Coronado began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2017 2018 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 -0- Billings to date 413,000 2,234,000 Collections during the year 351,000 1,530,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in 2017...
Riverbed Construction Company uses the percentage-of-completion
method of accounting. In 2017, Riverbed began work under contract
#E2-D2, which provided for a contract price of $2,195,000. Other
details follow:
2017
2018
Costs incurred during the year
$695,310
$1,404,000
Estimated costs to complete, as of December 31
921,690
–0–
Billings to date
426,000
2,195,000
Collections during the year
352,000
1,475,000
What portion of the total contract price would be recognized as
revenue in 2017? In 2018?
Revenue recognized in 2017
$
Revenue...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin began work under contract E2-02, which provided for a contract price of 52,195,000. Other details follow 2017 2018 Costs incurred during the year 5695,310 $1,404,000 Estimated costs to complete, as of December 31921,690 0 Billings to date 426,000 2,195,000 Collections during the year 352,000 1,475,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in...
Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000. Other details follow: 20XO 20X1 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 20x0? 2,195,000 878,000 1,097,500 427,000 343,000
C) Compute the amount of gross profit to be recognized
each year, assuming the completed-contract method is
used.
During 2017, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2019. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 $434,300 575,700 301,000 271,000 2018 $859,560 242,440 897,000 817,000 2019 $1,073,000 -0- 1,610,000 1,428,000 Prepare all necessary journal entries for 2018. (Credit...
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