Haresh gujariya Beavis Construction Company was the low bidder on a construction project to build an earthen damfor $1,890,000. The project was begun in 2023 and completed in 2024. Cost and other data arepresented below:Costs incurred during the yearEstimated costs to completeBillings during the yearCash collections during the year20232024$ 423,000 $ 1,190,000987,000445,000345,000Amount of gross profit recognized in 2023Amount of gross profit recognized in 202401,445,0001,545,000Assume that Beavis recognizes revenue on this contract over time according to percentage ofcompletion.Required:Compute the amount of gross profit recognized during 2023 and 2024.

The percentage of completion method is used to account for revenues under a long-term contract.…

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year 2023 $ 423,000 987,000 445,000 345,000 Amount of gross profit recognized in 2023 Amount of gross profit recognized in 2024 2024 $ 1,190,000 0 1,445,000 1,545,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year 2023 $ 423,000 987,000 445,000 345,000 Amount of gross profit recognized in 2023 Amount of gross profit recognized in 2024 2024 $ 1,190,000 0 1,445,000 1,545,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.

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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