Current Attempt in ProgressDuring 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technicaldifficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of thecontract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available:(a)202320242025Costs incurred to date$500,000 $1,750,000$3,400,000Estimated costs to complete2,625,0001,750,000-0-- Your answer is partially correct.Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enternegative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Gross profit/(loss)$20232024-100,000.00$2025$100000द

Using the percentage of completion method, the revenue and profits are recognized on the basis of…

Current Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland 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, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- (a) Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) 2023 100.000.00 2024 2025 100000

Current Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland 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, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- (a) Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) 2023 100.000.00 2024 2025 100000

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 19RE

See similar textbooks

Similar questions

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
During 2023, Grouper Corporation started a construction job with a contract price of $4.34 million. Grouper 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, Grouper sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date Estimated costs to complete 2023 2024 $620,000 $2,170,000 3,255,000 2,170,000 2025 $4,240,000 -0- Assume billings for the construction contract were as follows: 2023, $520,000: 2024, $2,050,000; and 2025, $1,770,000.
1. During 2020, Bay Construction started a new construction job with a contract price of $750 million. Bay has a 12/31 fiscal year end. Bay has determined that the contract does not qualify for revenue recognition over time. The contract was completed on 12/31/22 with the following information ($ in millions): Costs incurred in the period (paid in cash) Estimated costs to complete at 12/31 Billings on contract in the period Cash collected in the period 2020 180.0 2021 2022 432.0 150.0 540.0 153.0 -0- 150 350 250 200 400 150 What is the amount of gross profit (loss) on the contract that Bay would recognize on the Income Statement in 2020, 2021 and 2022? You must show supporting work (calculations/explanations) to receive credit for your answers. Gross Profit (Loss) 2020 2021 2022
During 2023, Sunland Company started a construction job with a contract price of $1,792,000. The job was completed in 2025. The following information is available. The contract is non-cancellable. Costs incurred to date Estimated costs to complete Billings to date (non-refundable) Collections to date (a) 2023 2024 $448,000 $924,000 672,000 336,000 1,008,000 907,200 302.400 308,000 0000 2025 $1,198,400 0 1,792,000 1,596,000 Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) nont ROOF
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,720,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year View transaction list Journal entry worksheet Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit ecognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. < 1 2 3 Note: Enter debits before credits. Date 2023 2023 2024 $ 411,000 $ 1,020,000 959,000 465,000 365,000 4 5 6 7 Record the entry for costs incurred during the year 2023. General Journal Construction in progress 0 1,255,000 1,355,000 8 9 Debit
Your answer is partially correct. During 2023, Darwin Corporation started a construction job with a contract price of $4.20 million. Darwin 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, Darwin sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date 2023 Estimated costs to complete 3,150,000 Gross profit/(loss) 2024 $600,000 $2,100,000 $4,100,000 2023 2,100,000 2025 Calculate the amount of gross profit or loss that should be recognized each year under the zero-profit method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter O for amounts.) 72000 $ -0- 2024 -72000 2025 100000
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,870,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year View transaction lit Journal entry worksheet 2 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 1 3 Outs 2023 4 5 2823 2824 $ 429,000 $1,170,000 1,001,000 General Jual 435,000 1,435,000 335.000 1,535,00m Record the entry for costs incurred during the year 2023. 7 • B CH
Assume that Sunland Construction Company has a non-cancellable contract to construct a $4,520,000 bridge at an estimated cost of $4,068,000. 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. Assume that progress billings are non-refundable. 2023 2024 2025 Costs to date (12/31) $1,017,000 $2,928,960 $4,576,500 Estimated costs to complete (12/31) 3,051,000 1,647,540 0 Progress billings during the year 968,000 2,418,000 1,134,000 Cash collected during the year 817,000 1,897,000 1,806,000 The revised estimates for the bridge contract are as follows. 2023 Original Estimates 2024 Revised Estimates Contract price $4,520,000 $4,520,000 Estimated total cost 4,068,000 4,576,500* Estimated gross profit $452,000 Estimated loss $(56,500) *$2,928,960 + $1,647,540 (a1) Under the percentage-of-completion method, calculate…
Oriole Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Whispering Winds Structures Ltd. The contract is a non-cancellable fixed-price contract for $9.7 million. The following data pertain to the construction period (all figures in thousands). Costs for the year Estimated costs to complete Progress billings for the year (non-refundable) Cash collected for the year (a) Your answer is incorrect. Percent complete 2023 2023 0 2024 $3,420 4,180 3,095 3,605 3,000 2,725 3,655 3,320 % 2025 Using the percentage-of-completion method, calculate the percentage complete for each year of the contract. (Round answers to O decimal places, e.g. 52%.) 4,180 1,800 1,900 -0- 2024 % 2025 100 %
I have zero idea how to figure these. Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: Required:1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion.2. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over…
Arizona Desert Homes (ADH) constructed a new subdivision during 2023 and 2024 under contract with Cactus Development Company. Relevant data are summarized below: Contract amount Cost: Gross profit: Contract billings: 2023 2024 2023 2024 2023 2024 $ 3,405,000 1,290,000 690,000 935,000 490,000 1,702,500 1,702,500 ADH recognizes revenue upon completion of the contract. What is the journal entry in 2024 to record revenue?
On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?