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In: Accounting
Question 25 On February 1, 2017, Marsh Contractors agreed to construct a building at a contract...
Question 25
On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $5,940,000. Marsh estimated total construction costs would be $4,112,000 and the project would be finished in 2019. Information relating to the costs and billings for this contract is as follows:
| 2017 | 2018 | 2019 | ||||
| Total costs incurred to date | $1,542,000 | $2,724,000 | $4,670,000 | |||
| Estimated costs to complete | 2,570,000 | 1,816,000 | -0- | |||
| Customer billings to date | 2,340,000 | 4,112,000 | 5,740,000 | |||
| Collections to date | 2,140,000 | 3,640,000 | 5,640,000 |
Fill in the correct amounts on the following schedule. For
percentage-of-completion accounting and for completed-contract
accounting, show the gross profit that should be recorded for 2017,
2018, and 2019.
Solutions
ekkarill92 answered 6 months agoRelated Solutions
On February 1, 2010, Marsh Contractors agreed to construct a building at a contract price of...
On February 1, 2010, Marsh Contractors agreed to construct a
building at a contract price of $5,800,000. Marsh estimated total
construction costs would be $4,000,000 and the project would be
finished in 2012. Information relating to the costs and billings
for this contract is as follows: 2014 2015 2016 Total costs
incurred to date $1,500,000 $2,640,000 $4,600,000 Estimated costs
to complete 2,500,000 1,760,000 -0- Customer billings to date
2,200,000 4,000,000 5,600,000 Collections to date 2,000,000
3,500,000 5,500,000
Instructions Fill in...
On February 1, 2010, Marcos Contractors agreed to construct a building at a contract price of...
On February 1, 2010, Marcos Contractors agreed to construct a
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construction costs would be $2,000,000 and the project would be
finished in 2012. Information relating to the costs and billings
for this contract is as follows:
? 2010?? 2011?? 2012?
Total costs incurred to date?$
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Estimated costs to complete?1,250,000? 880,000?-0-
Customer billings to date?1,100,000? 2,000,000?3,000,000
Collections to date?1,000,000? 1,750,000?2,950,000
Instructions
1. Fill in the correct amounts on the following...
On February 1, 2010, Marcos Contractors agreed to construct a building at a contract price of...
On February 1, 2010, Marcos Contractors agreed to construct a
building at a contract price of $3,000,000. Marcos estimated total
construction costs would be $2,000,000 and the project would be
finished in 2012. Information relating to the costs and billings
for this contract is as follows:
? 2010?? 2011?? 2012?
Total costs incurred to date?$ 750,000?$1,320,000?$2,300,000
Estimated costs to complete?1,250,000? 880,000?-0-
Customer billings to date?1,100,000? 2,000,000?3,000,000
Collections to date?1,000,000? 1,750,000?2,950,000
Instructions
1. Fill in the correct amounts on the following...
On January 1, 2018, Grumpy Contractors agreed to construct a building at a contract price of...
On January 1, 2018, Grumpy Contractors agreed to construct a
building at a contract price of $5,000,000. Grumpy estimates that
the project will be finished in 2020. Information related to the
costs and billings for this contract are as follows:
2018
2019
2020
Total costs incurred to date
$1,500,000
$3,300,000
$4,400,000
Estimated costs to complete
2,500,000
1,000,000
-0-
Customer billings to date
1,200,000
2,700,000
4,400,000
Collections to date
1,000,000
2,500,000
4,400,000
Instructions:
Assuming the building was finished in 2020, calculate...
On February 1, 2020, a company agreed to construct a building at a contract price of...
On February 1, 2020, a company agreed to construct a building at
a contract price of $35,000. The company estimated the project
would be finished in 2022. Information relating to the costs and
billings for this contract is as follows:
2020 2021 2022
Total costs incurred to
date $8,000 $10,000 $22,000
Estimated costs to
complete 12,000 6,000 -0-
Customer billings to
date 8,000 24,000 29,000
Collections to
date 4,000 14,000 25,000
The journal entry to record Billings on
Construction in Process in 2021 has the amount of
_________.
On February 1, 2020, a company agreed to construct a building at a contract price of...
On February 1, 2020, a company agreed to construct a building
at a contract price of $42,000. The company estimated the project
would be finished in 2022. Information relating to the costs and
billings for this contract is as follows:
2020 2021 2022
Total costs incurred to date $8,000 $10,000 $22,000
Estimated costs to complete 12,000 6,000 -0-
Customer billings to date 9,000 21,000 29,000
Collections to date 4,000 14,000 25,000
If the company uses the percentage-of-completion method, an
inventory/current...
On February 1, 2020, Joe agreed to construct a building at a contract price of $17,400....
On February 1, 2020, Joe agreed to construct a building at a
contract price of $17,400. Joe estimated total construction costs
would be $12,000 and the project would be finished in 2022.
Information relating to the costs and billings for this contract is
as follows:
2020 2021 2022
Total costs incurred to
date $4,500 $7,920 $13,800
Estimated costs to
complete 7,500 5,280 -0-
Customer billings to
date 6,600 12,000 16,800
Collections to
date 6,000 10,500 16,500
Instructions:
Fill in the correct amounts on the following schedule. For
percentage-of-completion accounting and for completed-contract
accounting, show...
Chicago contractors got $5,400,000 contract to construct a school building for the City of Chicago. Work...
Chicago contractors got $5,400,000 contract to construct a
school building for the City of Chicago. Work on this contract
began in 2013 and the financial data pertaining to this contract is
available here. Cost incurred till Dec.31, 2013 $1,080,000 Billings
made to City $1,000,000 Amount collected from City $ 750,000 The
estimated future cost to complete this contract is $3,240,000.
(a) Prepare Chicago contractors 2013 journal entries using
COMPLETED CONTRACT method. (b) Show how the contract accounts will
appear in...
Question: In ABC firm of building, contractors began construction on 1st April, 2019. The contract is...
Question: In ABC firm of building, contractors began
construction on 1st April, 2019. The contract is incomplete and the
contractor is confused about how to transfer profit or loss in the
P/L account. Being a student of cost accounting, you are required
to state the rules regarding the transfer of profits to profit and
loss account in case of incomplete contracts( 0%,20%,50%,75%,90 %)
to the contractor.
Concord, Inc. began work on a $6,466,000 contract in 2017 to construct an office building. During...
Concord, Inc. began work on a $6,466,000 contract in 2017 to
construct an office building. During 2017, Concord, Inc. incurred
costs of $1,547,340, billed its customers for $1,085,000, and
collected $1,013,000. At December 31, 2017, the estimated
additional costs to complete the project total $3,003,660. Prepare
Concord’s 2017 journal entries using the percentage-of-completion
method.
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