During 2023, Cullumber Company started a construction job with a contract price of $1,984,000. 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) $496,000 744,000 372,000 334,800 Show Transcribed Text 2024 $1,023,000 2023 341,000 1.116.000 1,004,400 2025 $1,326.800 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 eg -45 or porentheses es (451) 0 1.984.000 1.767,000 2024 2025

During 2023, Cullumber Company started a construction job with a contract price of $1,984,000. 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) $496,000 744,000 372,000 334,800 Show Transcribed Text 2024 $1,023,000 2023 341,000 1.116.000 1,004,400 2025 $1,326.800 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 eg -45 or porentheses es (451) 0 1.984.000 1.767,000 2024 2025

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During 2025, Cullumber Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date Ⓡ 2025 $393,900 $889,380 Gross profit recognized in 2026 616,100 Gross profit recognized in 2027 303,000 273.000 Gross profit recognized in 2025 $ 2026 $ $ 208,620 902,000 814,000 2027 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. $1,061,000 -0- 1,620,000 1,418,000
During 2025, Blossom Company started a construction job with a contract price of $1,590,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 2026 $366,300 $831,440 623,700 262,560 297,000 894,000 270,000 816,000 Gross profit recognized in 2025 Gross profit recognized in 2026 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2027 2027 $1,067,000 $ -0- 1,590,000 1,417,000.
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
During 2025, Oriole Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $380,000 $847,770 Gross profit recognized in 2026 620,000 Gross profit recognized in 2027 302,000 272,000 Gross profit recognized in 2025 $ 2026 $ $ 253,230 896,000 812,000 2027 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. $1,069,000 1,610,000 1,418,000 ✩
JC Construction, Inc. has consistently used the percentage of completion method of recognizing income. During 2018 JC started work on a P3,000,000 fixed price construction contract. The accounting records disclosed the following data for the year ended December 31, 2018: Cost incurred P930,000 Estimated Cost to Complete 2,170,000 Progress Billings 1,100,000 Collections 700,000 How much loss should JC have recognized in 2018
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
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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.
Oriole Construction Company began work on a $420,000 construction contract in 2025. During 2025, Oriole incurred costs of $264, 500, billed its customber for $207,000, and collected $179,500. December 31, 2025, the estimated additional costs to complete the project total $159, 650. Prepare Oriole's journal entry to record profit or loss, if any, using (a) the percentage - of - completion method and (b) the cost-recovery method.
NEED SOLUTION ASAP PLEASE! THANK YOU A Company has used the cost-to-cost percentage-of-completion (Over time) method of recognizing revenue. The following information regarding a recently completed building project for which the total contract price was P2,000,000. Description 2018 2019 2020 Gross profit (loss) P40,000 P140,000 P(20,000) Cost incurred each year 360,000 ? 820,000 What was the total estimated gross profit by the end of 2019?
During 2025, Crane Company started a construction job with a contract price of $1,590,000. The job was completed in 2027. The following information is available. \table [[, 2025, 2026 2027], [Costs incurred to date,$410, 000, $901, 180, $1,067, 000. please calculate the gross profit for years 2025 - 2027 using the percentage - of - completion method
(Recognition of Profit on Long-Term Contracts) During 2022, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2024. The following information is available # Item 2022 2023 2024 1 Costs incurred to date 400,000 825,000 1,070,000 2 Estimated costs to complete 600,000 275,000 - 3 Billings to date 300,000 900,000 1,600,000 4 Collections to date 270,000 810,000 1,425,000 Instructions a. Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. b. Prepare all necessary journal entries for 2023.