Using the percentage-of-completion method, calculate the percentage complete for each year of the contract. (Round answers to O decimal places, eg. 52%)

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 10C
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Sandhill Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Tamarisk Structures Ltd.
The contract is a non-cancellable fixed-price contract for $9.2 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)
Percent complete
Save for Later
2023
2024 2025
$3,645
4,455
800
4,455 900
3,320
2,925
Using the percentage-of-completion method, calculate the percentage complete for each year of the contract. (Round answers to 0
decimal places, eg. 52%)
2023
-0.
3,880 2,000
3,930 2,345
2024
2025
Attempts: 0 of 1 used Submit Answer
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
%
(c1)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c2)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Transcribed Image Text:Sandhill Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Tamarisk Structures Ltd. The contract is a non-cancellable fixed-price contract for $9.2 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) Percent complete Save for Later 2023 2024 2025 $3,645 4,455 800 4,455 900 3,320 2,925 Using the percentage-of-completion method, calculate the percentage complete for each year of the contract. (Round answers to 0 decimal places, eg. 52%) 2023 -0. 3,880 2,000 3,930 2,345 2024 2025 Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. % (c1) The parts of this question must be completed in order. This part will be available when you complete the part above. (c2) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
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