On February 1, 2023, Ivanhoe Contractors agreed to construct a building at a contract price of $5,840,000. Ivanhoe estimated total construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2023 Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show the gross profit that should be reported for 2023, 2024, and 2025. 2024 2023 2024 $1,512,000 $2,664,000 2,520,000 1,776,000 2,240,000 4,032,000 2,040,000 3,540,000 2025 Percentage-of-Completion Gross Profit 2023 2024 2025 2025 $4,620,000 -0- 5,640,000 5,540,000 LA Cost-Recovery Gross Profit

On February 1, 2023, Ivanhoe Contractors agreed to construct a building at a contract price of $5,840,000. Ivanhoe estimated total construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2023 Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show the gross profit that should be reported for 2023, 2024, and 2025. 2024 2023 2024 $1,512,000 $2,664,000 2,520,000 1,776,000 2,240,000 4,032,000 2,040,000 3,540,000 2025 Percentage-of-Completion Gross Profit 2023 2024 2025 2025 $4,620,000 -0- 5,640,000 5,540,000 LA Cost-Recovery Gross Profit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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