FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Curtiss Construction Company, Incorporated, entered into a fixed price contract with Axelrod Associates on July 1, 2024, to construct a
four story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The
total contract price for construction of the building is $4,240,000 The building was completed on December 31, 2026 Estimated
percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to
Axelrod under the contract were as follows
Percentage of completion
Cests incurred to date
Estimated costs to complete
Billings to Axelrod, to date
Required:
At 12-11-2024
10%
At 12-31-2025
$2,688,000
1,792,000
AT 12-11-2026
60%
100%
$ 4,534,000
4,240,000
$363,000
3,267,000
724,000
2,250,000
1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the
contract does not qualify for revenue recognition over time
2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be
recognized in each of the three years
3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the
balance sheet at the end of 2024 and 2025 as either cost in excess of billings or billings in excess of costs
Complete this question by entering your answers in the tabs below.
Req 1 and 21
Reg 3
1. Compute gross profit or loss to be recognized as a result of this contact for each of the three years. Curbss
concludes that the contract does not qualify for revenue recognibon over time. 2. Assuming Cur bus recognizes revenue
over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three
Note: Leave no cells blank be certain to enter "0% wherever required. Loss amounts should be indicated with a minus
sign.
years.
Year
2024
2025
Req 1
Gross Profit (Loss) Recognized
("Upon Completion
Req 2
Gross Profit (Loss)
Recognized
Over Time
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Transcribed Image Text:Curtiss Construction Company, Incorporated, entered into a fixed price contract with Axelrod Associates on July 1, 2024, to construct a four story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,240,000 The building was completed on December 31, 2026 Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows Percentage of completion Cests incurred to date Estimated costs to complete Billings to Axelrod, to date Required: At 12-11-2024 10% At 12-31-2025 $2,688,000 1,792,000 AT 12-11-2026 60% 100% $ 4,534,000 4,240,000 $363,000 3,267,000 724,000 2,250,000 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2024 and 2025 as either cost in excess of billings or billings in excess of costs Complete this question by entering your answers in the tabs below. Req 1 and 21 Reg 3 1. Compute gross profit or loss to be recognized as a result of this contact for each of the three years. Curbss concludes that the contract does not qualify for revenue recognibon over time. 2. Assuming Cur bus recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three Note: Leave no cells blank be certain to enter "0% wherever required. Loss amounts should be indicated with a minus sign. years. Year 2024 2025 Req 1 Gross Profit (Loss) Recognized ("Upon Completion Req 2 Gross Profit (Loss) Recognized Over Time Show lessa
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