At that time, Andrei estimated that it would take 3 y at a total cost of P4,500,000. The total contract price is Andrei incurred P1,185,800 in construction costs and 200 more will be needed for its completion. Lindsey nd paid 30% of the contract price. years ndrei Construction Company incurred P3,299,200 and the
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- Swifty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $894,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $263,120 $412,620 $607,000 Estimated costs to complete 334,880 185,380 –0– Progress billings to date 272,000 545,000 894,000 Cash collected to date 242,000 495,000 894,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated…Shanahan Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $609,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $266,640 $412,080 $617,000 Estimated costs to complete 339,360 193,9200 –0– Progress billings to date 270,000 545,000 896,000 Cash collected to date 240,000 495,000 896,000 A/ Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross profit recognized in 2022: B/ Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. Gross profit recognized in 2020: Gross profit recognized in 2021: Gross…Paul Constructions has entered into a contract beginning January 1, 2020, to build a pool. It has been estimated that the pool will cost P300,000, and will take three years to construct. The pool will be billed to the purchasing at P450,000. The following data pertain to the construction period. 2020 135,000 165,000 2021 210,000 90,000 2022 0 Cost to date: Estimated cost to complete. Progress billing to date. Cash collected to date 135.000 120.000 275.000 250,000 450,000 450.000 During 2020, Costs incurred include P15,000 standard materials stored at the site to be used in 2022 to complete the project. Using the percentage of completion method, compute the recognize gross profit for 2022: a. 52,500 b. 45,000 c. 97.500 d. 150,000 2. The CIP net of Progress billing is a. 27.500 current liability b. 32,500 current asset c. 167,500 current asset. d. 102,500 current liability
- Triple Take Construction Co, began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project. 2018 4,500,000 5,500,000 4,320,000 3,240,000 2019 7,520,000 1,880,000 7,680,000 5,760,000 2017 Costs Incurred to Date Estimated Costs to Complete Progress Billings to Date Cash Collection for the Year 2,160,000 6,840,000 | 2,304,000 1,728,000 How much is the gross profit/loss realized in 2018?1.On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow:Contract BillingsCosts incurredEst’d Costs to Complete2022 10,500,000 5,460,000 20,540,0002023 12,500,000 9,984,000 13,156,0002024 14,440,000 15,756,000 -The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeksWhat is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000 2.MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below:Site Contract PriceCost IncurredEstimated Costs to CompleteBillings on ContractCollections on Billings1 5,000,000 3,750,000 - 5,000,000 5,000,0002 7,000,000 1,000,000 4,000,000 900,000…On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: 2020 2021 2022 Total costs incurred during the year 4,500,000 5,300,000 4,000,000 Estimated costs to complete 7,500,000 4,200,000 1,800,000 Customer billings to date 6,600,000 12,000,000 13,800,000 Collections to date 6,000,000 10,500,000 13,500,000 Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. Using the cost-recovery method,…
- On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: 2020 2021 2022 Total costs incurred during the year 4,500,000 5,300,000 4,000,000 Estimated costs to complete 7,500,000 4,200,000 1,800,000 Customer billings to date 6,600,000 12,000,000 13,800,000 Collections to date 6,000,000 10,500,000 13,500,000 Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. Using the cost-recovery method,…Rogers Ltd. has entered into a contract beginning in February 2020 to build two warehouses for ocean Ltd. The contract is a non-cancellable fixed price contract for $9.4 million. The following data pertain to the construction period. 2020 2021 2022 Costs for the year $3,285,000 4,015,000 1,800,000 Estimated costs to complete 4,015,000 1,825,000 -0- Progress billings for the year (non-refundable) 2,960,000 3,440,000 3,000,000 Cash collected for the year 2,605,000 3,490,000 3,305,000 a) Using the percentage-of-completion method, calculate the percent complete for each year of the contract. b) Calculate the amount of the gross profit to be recognized each year of the contract. c) Prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.) d) What is the balance in the Contract Asset/Liability account at December 31, 2020 and 2021? Show how the construction contract would be reported on the SFP…On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Billings Costs incurred Est'd Costs to complete 2022 10,500,000 5,460,000 20,540,000 2023 12,500,000 9,984,000 13,156,000 2024 14,440,000 15,756,000 - The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks. What is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000
- Question Three: $960,000. The job was completed in 2022. The following information is available: During 2020 Nass Company started a construction job with a contract price of Costs to date Estimated costs to complete Billings to date Collections to date 2020 $240,000 360,000 180,000 162,000 (a) Percentage-of-completion Date 2021 2021 $495,000 165,000 540,000 486.000 Required: a) Preparing all the journal entries for 2021 Assuming Nass uses the percentage-of-completion method. Account b) Assume that Nass uses the cost-recovery method, record the revenue, and gross profit if any, recognized in 2021 and 2022. c) Show the presentation of construction-in-process and billings in construction-in-process accounts in the statement of financial position in 2020 under both the percentage-of-completion and the cost-recovery method. 2022 $642,000 0 960,000 855,000 Debit Credit ASI -991E ATUProblem 3: Roman Construction Company (RCC) agrees to build a large office building for Carmen Towers for a total contract price of P5,000,000. The contract is signed on October 1, 2019 and RCC's year end is December 31. The total anticipated costs at October 1, 2019 is P4,500,000. Below gives further information about the contract: Total 4,000,000 2019 2020 2021 Cost incurred each year Estimated cost to complete at year end Progress billing Progress payments 1,350,000 2,250,000 400,000 3,150,000 400,000 275,000 2,100,000 400,000 2,000,000 2,600,000 2,625,000 5,000,000 5,000,000 Requirement: a. Compute for the gross profit / loss each year. b. Compute for the construction revenue for each year. c. Journal entries for 2019, 2020 and 2021, under the traditional accounting and under PFRS 15. d. Show all computations in good form.ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?