Exercise 18A-29 (Part Level Submission)Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,376,000. Other details follow:Costs incurred during the yearEstimated costs to complete, as of December 31Billings during the yearCollections during the year iTotal contract price(a)Your answer is incorrect. Try again.What portion of the total contract price would be recognized as revenue in 2014? In 2015?20142015SHOW LIST OF ACCOUNTS2014$691,2001,036,800453,600378,000LINK TO TEXT2015$1,539,000-0-1,814,4001,620,00023760002376000By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

When revenue is earned and realized, or realizable, it is recognized. Accordingly, revenue should be…

Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, 2014 2015 $691,200 $1,539,000 1,036,800 -0- 453,600 1,814,400 378,000 1,620,000 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year

Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, 2014 2015 $691,200 $1,539,000 1,036,800 -0- 453,600 1,814,400 378,000 1,620,000 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year

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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Cullumber Construction Co. uses the percentage-of-completion method. In 2024, Cullumber began work on a contract for $23200000; it was completed in 2025. The following cost data pertain to this contract: Year Ended December 31 2024 2025 Cost incurred during the year $8736000 $5720000 Estimated costs to complete at the end of year 5824000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is ○ $3456000. ○ $8744000. $2920000. $3560000.
Current Attempt in Progress Sandhill Construction Company uses the percentage-of-completion method of accounting. In 2025, Sandhill began work under contract #E2-D2, which provided for a contract price of $2,159,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2025 $571,320 1,015,680 415,000 349,000 2026 $1,446,000 -0- 1,639,000 1,505,000
(Recognition of Revenue on Long-Term Contract and Entries) Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2017, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow: 2017 2018 Costs incurred during the year $640,000 $1,425,000 Estimated costs to complete, as of December 31 960,000 –0– Billings during the year 420,000 1,680,000 Collections during the year 350,000 1,500,000 Instructions(a) What portion of the total contract price would be recognized as revenue in 2017? In 2018?(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2018?(c) Prepare a complete set of journal entries for 2017 (using the percentage-of-completion method).
A A N T During 2023, Cullumber Corporation started a construction job with a contract price of $3.78 million. Cullumber ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Cullumber sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date Estimated costs to complete (a) 0 S? S X Your anwwer is correct alt Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter Type here to search B LU $ C R D. F 2023 $540,000 2.835.000 5 V T $1,890,000 2024 6 1,890.000 B 6 193 Y G H 17 &7 & 17 7 2025 $3.680.000 N 10 8 UO (81 ( 19 MO -1°C Clear JOK 2 10 V NOGO alt 00 0 L 3 111 OU РО { . I NO ** 112 0 13 [ ? 0 ctri de insert L4 1 backspace enter t shift SUP ENG V
Widjaja Company is accounting for a long-term construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company. Instructions a. What theoretical justification is there for Widjaja Company's use of the percentage-of-completion method? b. How would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financial statements. c. How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion? d. What would be the effect on earnings per share in the second year of the 4-year contract of using the percentage-of-completion method instead of the completed-contract method? Discuss.
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