Hayes Construction Corporation contracted to construct a building for $7,500,000. Construction began in 2022 and was completed in 2023. Data relating to the contract are summarized below:       Year ended                    December 31,                   2022 2023             Costs incurred   $3,000,000 $2,250,000             Estimated costs to complete   2,000,000 0                                   Hayes uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2022, and 2023, respectively, Hayes should report gross profit of a. $1,350,000 and $900,000.                 b. $4,500,000 and $3,000,000.                 c. $1,500,000 and $750,000.                 d. $0 and $2,2

Sagar

Explain clearly

Assume that Crane Construction Company has a non-cancellable contract to construct a $4,640,000 bridge at an estimated cost of $4,176,000. The contract is to start in July 2023, and the bridge is to be completed in October 2025. The following data pertain to the construction period. (Note that, by the end of 2024, Crane has revised the estimated total cost from $4,176,000 to $4,228,200.) Assume that progress billings are non-refundable. Costs to date (12/31) Estimated costs to complete (12/31) Progress billings during the year Cash collected during the year (a1) Account Titles and Explanation (To record cost of construction) (To record progress billings) (To record collections) (To record revenues) 2023 (To record construction expense) 3,173,760 $1,002,240 $2,959,740 $4,228,200 994,000 2024 834,960 1,268,460 2,483,000 Prepare all journal entries required for Crane to account for this contract for 2023. (Credit account titles are automatically indented when the amount is entered. Do not…

In 2020, Grouper Construction Corp. began construction work under a 3-year contract. The contract price was $1,060,000. Grouper uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2020, are shown below. Balance Sheet Accounts receivable       $17,700 Construction in process   $68,300     Less: Billings   61,300     Costs and recognized profit in excess of billings       7,000 Income Statement Income (before tax) on the contract recognized in 2020   $16,392 (a) How much cash was collected in 2020 on this contract? Portion of contract billings collected   $enter a dollar amount   (b) What was the initial estimated total income before tax on this contract? Income before tax on this contract   $enter a…

Cullumber, Inc. began work on a $7,164,000 contract in 2020 to construct an office building. During 2020, Cullumber, Inc. incurred costs of $1,960,630, billed its customers for $1,255,000, and collected $920,000. At December 31, 2020, the estimated additional costs to complete the project total $3,338,370.Prepare Cullumber’s 2020 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record costs incurred enter a debit amount enter a credit amount enter an account title to record costs incurred enter a debit amount enter a credit amount (To record costs incurred.)     enter an account title to record billings enter a debit amount…