JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete $1,550,000 500,000 0 Cost incurred 2023 $ 250,000 2024 1,600,000 2025 450,000 In 2024, JRE2 would report gross profit (loss) of:

JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete $1,550,000 500,000 0 Cost incurred 2023 $ 250,000 2024 1,600,000 2025 450,000 In 2024, JRE2 would report gross profit (loss) of:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 250,000 $ 1,550,000 2024 1,600,000 500,000 2025 450,000 0 In 2025, JRE2 would report gross profit (loss) of:
JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,275,000. JRE 2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 260,000 $ 1,600,000 2024 1,650,000 550,000 2025 500,000 0 In 2024, JRE2 would report gross profit (loss) of: Multiple Choice $(320,000). $(235,000). $(185,000). So.
contract. Information on the construction is shown below: in recognizing revenue and profit from the contract. In 20xl, Taste Construction Co. started work on a P5M fixed price Taste uses the percentage of completion method (based on costs) 20x1 20x2 1,425,000 4,040,000 3,325,000 1,010,000 20x3 Casts incurred to date 5,080,000 How much is the loss provision recognized in 20x2? a. 25,000 b. 15,000 c. 10,000 d. 5,000
Athena Co. started work on an P8M fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 20x3 Costs incurred per year 2,850,000 3,670,000 1,600,000 Estimated costs to complete 4,275,000 1,630,000 - Requirement: Compute for the amounts recognized in profit or loss in 20x1, 20x2, 20x3, respectively.
Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, the following information: In thousand pesos: Project A Project B Contract Price P 4,800 860 20x4: Costs incurred P 3,400 Percent completed 75% 20x5: Costs incurred P 1,250 140 Percent Completed 25% 15% Using the percentage-of-completion (over time) method of revenue recognition, gross profit on Project A to be recognized in 20x4 would be: a. P 200,000 ] b. P 300,000
UN LOUIS ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?
Blue construction Co. has two projects for which it reported, as of December 31, 2012, the following information: Project a Project b Contract price P4, 800, 000 P860,000 2011: cost incurred 3, 400, 000 Percentage completed 75% 2012: cost incurred P1, 250, 000 P140, 000 Percentage completed 25% 15%Using the percentage of completion method of revenue recognition, gross profit on project A to be presented in 2011 would be:P 200, 000 P300, 000 P400, 000 P900, 00How much is the construction in progress on December 31,2011 from project A?200,0003,600,0003,400,0004,800,000
P ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.7. Realized gross profit in 20x2 _____________8. The balance of "Contract Liability" at the end of 20x2 _____________9. Revenue that should be recognized in 20x3 _____________10. Realized gross profit in 20x3
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.4. Balance of "Contract Liability" at the end of 20x1 _____________5. Percentage of completion for 20x2 _____________6. Revenue that should be recognized in 20x2 _____________
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.1. Percentage of completion for 20x1 _____________2. Revenue that should be recognized in 20x1 _____________3. Realized gross profit in 20x1 _____________4. Balance of "Contract Liability" at the end of 20x1 _____________
ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?