WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows: Percentage of work completed Costs incurred during the year Progress billings during the year Cash collected during the year Year 1 25% Year 2 35% $86,000 $124,000 80,000 180,000 65,000 170,000 Year 3 40% $ 90,000 190,000 215,000 At the end of Year 1, how much is the balance of the assets account Production-in- Progress if WW Guy uses the percentage of completion method? A. $ 11,000 B. $ 75,000 C. $ 86,000 D. $113,750
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At the end of Year 1, how much is the balance of the assets account Production-in-Progress if WW Guy uses the percentage of completion method? see the options in attached screenshot.
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- SMDC Construction signed a contract to build a building over a period 3 years for a price of P10,000,000. Information relating to the performance of the contract is summarized as follows: 2017 2018 2019 contribution costs incurred during the year 2,500,000 2,400,000 1,800,000 estimated costs to complete 4,500,000 1,800,000 - buildings during the year 2,200,000 2,800,000 5,000,000 collections during the year 2,000,000 2,500,000 5,500,000 Prepare the entries under the percentage of completion.MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows: 20X1 20X2 Costs incurred during the year $ 290,000 $ 150,000 Estimated additional cost to complete 145,000 — Billings during the year 260,000 265,000 Cash collections during the year 240,000 285,000 Required: Record the preceding transactions in MSK’s books assuming it recognizes revenue over time and uses costs incurred to measure the extent to which its performance obligation has been satisfied. Record the preceding transactions in MSK’s books assuming it recognizes revenue at a point in time when control of the completed factory is transferred to the customer at the end of the project. Question: Prepare the entry to record revenue, expense, and completion of the project.Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,375,000. Construction activities are summarized below by year: Costs incurred during the year Estimated cost to complete Required: 1. Prepare the journal entries for revenue recognition for each year. 2. Calculate the gross margin for each year on the contract. 20X2 1,700,000 3,400,000 20X3 1,785,000 3,017,500 20X4 3,060,000 O
- Brooksville Construction began a construction project in 20x5. The contract price was P1,250,000, and the estimated costs were P1,000,000. Data for each year of the contract are as follows: 20x5 20x6 20x7 Costs incurred during the year P 250,000 P 600,000 P 190,000 Estimated costs to complete 750,000 212,500 -0- Partial billings 375,000 500,000 375,000 Collections 187,500 469,000 593,500 Assuming Brooksville uses the percentage-of-completion method of revenue recognition, determine: What is the balance of Construction in Progress at the end of 20x5.16. Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated construction costs at inception was $4,000,000. The construction project was completed after two years. Below are the actual costs for years 1 and 2: Description Cumulative Year 1 Year 2 Cost incurred to date 1,200,000 2,500,000 Estimated additional costs to complete 3,600,000 2,100,000 Billings 1,050,000 2,300,000 Cash Collections 1,000,000 1,900,000 Red has determined that this contract qualifies for revenue recognition over time (as opposed to upon completion). As a result, Red Builders should have recognized profit at the end of year 1 in the amount of:During the year just ended, Morton Company made the following expenditures relating to its plant building: Continuing and frequent repairs P1,600,000 Repainted the plant building 400,000 Major improvements to the electrical wiring system 1,280,000 Partial replacement of roof tiles 560,000 How much should be charged to repair and maintenance expense during the year just ended?
- On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $675,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $360,000 Progress billings $171,000 Cash collections $157,500 Estimated costs to complete $360,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. •Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Cost of Construction Construction in Process Revenues from Long-Term Contracts V To recognize revenues and expenses Account Name Billings on Contracts Construction in Process V To recognize revenues and expenses Dr. 720,000 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. •Note: If a journal entry isn't required on any of the…On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $900,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $480,000 Progress billings $228,000 Cash collections $210,000 Estimated costs to complete $480,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. *Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Cost of Construction Deferred Revenue Revenues from Long-Term Contracts To recognize revenues and expenses N/A-Debit Account Name V N/A-Credit To recognize revenues and expenses Dr. 480,000 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. *Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and…Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows: 2019 2020 2021 Construction costs incurred during the year $150,000 $242,000 $168,000 Estimated costs to complete 350,000 168,000 — Billings during the year 120,000 250,000 330,000 Collections during the year 100,000 260,000 340,000 Required: 1. Prepare journal entries for all 3 years. 2. Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries for all 3 years. 1. Assume the contract represents a single performance obligation that will be satisfied over time. Prepare journal entries on December 31 for all 3 years -to record costs of construction for cash -to record partial…
- Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows: 2019 2020 2021 Construction costs incurred during the year $150,000 $242,000 $168,000 Estimated costs to complete 350,000 168,000 — Billings during the year 120,000 250,000 330,000 Collections during the year 100,000 260,000 340,000 Required: 1. Prepare journal entries for all 3 years. 2. Assume that the contract represents a single performance obligation that will be satisfied at a point in time. Prepare journal entries for all 3 years. Please dont provide image based answers thank youThe following information relates to Contract 6502, which was undertaken for the construction of roadways for the City Council. The total value of the contract was $250,000 and it is at a stage where profits can be attributed to it. Details of the contract are shown in the books: $ Materials sent to site 85,349 Labour engaged on site 74,375 Plant installed at cost 15,000 Direct expenditure 4,136 General overhead charges 3,167 Materials returned to store…On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $900,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $480,000 Progress billings $228,000 Cash collections $210,000 Estimated costs to complete $480,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. •Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name To recognize revenues and expenses Dr. 0 0 0 Cr. 0 0 0