During 2019, Gulf Co. started a construction project with a total contract price of $3,500,000. Additional informatio. below: 2019 2020 Actual costs incurred during the S1,350,000 S1,525,000 year Estimated remaining costs Billings to customers Collected from customers 1,350,000 --- 1,200,000 2,300,000 1,000,000 2,400,000 What amount of gross profit should be recognized in 2020?

During 2020, Tamarisk Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $405,900 $766,500 $1,076,000 Estimated costs to complete 584,100 328,500 -0- Billings to date 300,000 893,000 1,610,000 Collections to date 267,000 809,000 1,435,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $ Gross profit recognized in 2021 Gross profit recognized in 2022 2$ eTextbook and Media List of Accounts Save for Later Attempts: unlimited Submit Answer %24 %24

On April 12, 2021, Jacob’s Construction contracted to build a 400 Unit Apartment Complex at a contract price of $85 million. The schedule of expected (which equals actual) cash collections and contract direct costs (excluding SG&A) is as follows: Year Cash Collections Cost Incurred 2021 $60 million $ 45 million 2022  20 million   27 million Total $80 million $72 million   Calculate the Gross Profit for the Total Contract   Calculate the Gross Margin for the Total Contract       Calculate the revenue for 2021     Calculate the revenue for 2022       Calculate the gross profit for 2021     Calculate the gross profit for 2022       Calculate the gross margin for 2021     Calculate the gross margin for 2022

B Company is recognizing income from long-term construction contracts. In 2020, B entered into a fixed contract to construct a fly-over connecting Luzon and Mindanao for P65,000,000. Estimated costs and contract costs incurred up to 2023 were as follows: Year Cost incurred Estimated cost at completion Progress billings 15,000,000 6,000,000 25,000,000 19,000,000 2020 15,000,000 60,000,000 62,000,000 66,000,000 63,000,000 2021 6,700,000 2022 24,500,000 16,800,000 2023 Using percentage of completion method, compute for the following: 1. Realized gross profit in 2021 2. CIP, net of progress billings as of 2022 3. Revenue earned in 2023

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…

Colorado Inc. constructed a factory during 2020 and 2021 under contract with Pacific Machinery Co. Relevant data are summarized below: Contract price Cost Gross profit Contract billings $3,000,000 2020 1,200,000 2021 600,000 2020 800,000 2021 400,000 2020 1,500,000 2021 1,500,000 Colorado Inc. recognizes revenue over time with respect to this contract. In its December 31, 2020, balance sheet, Colorado would report: ● The contract asset, cost and profit in excess of billings, $500,000. The contract liability, billings in excess of cost, of $300,000. The contract asset, contract amount in excess of billings, of $1,500,000. The contract asset, deferred profit, of $400,000.

During 2020, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.     2020   2021   2022 Costs incurred to date   $393,900   $760,380   $1,059,000 Estimated costs to complete   616,100   341,620   –0– Billings to date   299,000   905,000   1,610,000 Collections to date   268,000   818,000   1,421,000     Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020   $enter a dollar amount  Gross profit recognized in 2021   $enter a dollar amount  Gross profit recognized in 2022   $enter a dollar amount    eTextbook and Media List of Accounts                             Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not…

Crane Construction Co. uses the percentage-of-completion method. In 2021, Crane began work on a contract for $24475000; it was completed in 2022. The following cost data pertain to this contract: Year Ended December 31 2021 2022 Cost incurred during the year $8350000 $6150000 Estimated costs to complete at the end of year 5739000 If the completed-contract method of accounting was used, the amount of gross profit to be recognized for years 2021 and 2022 would be 2021 2022 $9975000. $(411000). $0. $10386000. $10386000. $0. $0. $9975000. O O

A company uses the percentage-of-completion method of accounting. In 2020, the company began work a project, which had a contract price of $22,300. Other details follow:            2020                  2021 Costs incurred to date           $6,000                        $18,000 Estimated costs to complete, as of December 31           14,000                         -0- Billings to date           11,460                        16,830 Collections to date            9,470                        14,650 In the journal entry to record progress billings for 2021, how much should Billings on Construction in Process be debited/credited? (Just enter the amount. DO NOT put a plus or minus sign in front of the amount.)

A company uses the percentage-of-completion method of accounting. In 2020, the company began work a project, which had a contract price of $23,700. Other details follow:            2020                  2021 Costs incurred to date           $6,000                        $18,000 Estimated costs to complete, as of December 31           14,000                         -0- Billings to date           11,350                        17,460 Collections to date            9,390                        16,260 At the end of 2020, what is the inventory/current liability related to the construction of this project? (Very important: if the company reports a current liability, then put a minus sign in front of the amount. If the company reports an inventory, then no plus or minus sign is needed.) (Do not round your answers in any part of the computation.)