On February 1, 2023, Magicfort Contractors agreed to construct a building at a contract price of $5,840,000. Magicfort estimatedtotal construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billingsfor this contract is as follows:202320242025Total costs incurred to dateEstimated costs to complete$1,512,0002,520,000$2,664,000 $4,620,0001,776,000-0-Customer billings to date2,240,0004,032,0005,640,000Collections to date2,040,0003,540,0005,540,000Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, showthe gross profit that should be reported for 2023, 2024, and 2025.Percentage-of-CompletionGross Profit20232023Cost-RecoveryGross Profit2024$2025$SA20242025$

Working for % ofcompletion method202320242025AContract Price$5,840,000$5,840,000$5,840,000BCost…

Answered: Fill in the correct amounts on the…

Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show the e gross profit that should be reported for 2023, 2024, and 2025.

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 9MC

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On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which The is estimated cost P31,200,000. company recognizes construction to Data on this project for 2022-2024 follow: Est'd Costs revenue over time. Contract Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 13,156,000 2022 5,460,000 9,984,000 2023 2024 15,756,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. contract was delayed for 8 weeks In 2024, the What is the gross profit for 2024? 1,164,000 1,466,400 1,724,000 1,824,000 А. с. в. D.
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National Construction agreed to construct a building for Berninger Corp with construction beginning on March 15, 2020. The project's contract price is $5,910,000, and National Construction estimates total construction costs would be $4,088,000. The project is scheduled to finish in 2022. Information relating to the costs and billings for this contract is as follows: 2020 2021 2022 Total costs incurred to date $1,533,000 $2,706,000 $4,655,000 Estimated costs to complete 2,555,000 1,804,000 -0- Customer billings to date 2,310,000 4,088,000 5,710,000 Collections to date 2,110,000 3,610,000 5,610,000 How much gross profit should be recorded for 2020, 2021, and 2022? Assuming National Construction uses the percentage-of-completion method of accounting for long-term contracts?