In: Accounting
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Part 1 | ||||
2020 | 2021 | 2022 | ||
Contract price | $ 897,000 | $ 897,000 | $ 897,000 | |
Actual costs to date | $ 275,080 | $ 412,620 | $ 607,000 | |
Estimated costs to complete | $ 272,000 | $ 545,000 | $ 897,000 | |
Total estimated costs | $ 547,080 | $ 957,620 | $ 1,504,000 | |
Estimated gross profit | ||||
(actual in 2022) | $ 349,920 | $ -60,620 | $ -607,000 | |
Revenue Recognition: | 50.28% | 43.09% | 40.36% | |
2020 | $275,080/$547,080*$897,000 | $ 451,025 | ||
2021 | $412,620/$957,620*$897,000 | Less: $451,025 | $ (64,525) | |
2022 | $897,000-$451,025-($64,525) | $ 510,500 | ||
Gross profit (loss) recognized: | ||||
2020 | $451,025-$275,080 | $ 175,945 | ||
2021 | ($60,620)-$175,945 | $ (236,565) | ||
2022 | $60,620-$607,000 | $ -546,380 | ||
Part 2 | ||||
2020 | 2021 | 2022 | ||
Contract price | $ 897,000 | $ 897,000 | $ 897,000 | |
Actual costs to date | $ 275,080 | $ 412,620 | $ 607,000 | |
Estimated costs to complete | $ 272,000 | $ 545,000 | $ 897,000 | |
Total estimated costs | $ 547,080 | $ 957,620 | $ 1,504,000 | |
Estimated gross profit | ||||
(actual in 2023) | $ 349,920 | $ -60,620 | $ -607,000 | |
Revenue Recognition: | Gross profit (loss) recognized: | |||
Year 2020 | $ - | $ - | ||
Year 2021 | $ - | $ - | ||
Year 2022 | $ 8,025,000 | $ 290,000 | Progress Billing $897,000-Cost $607,000 | |
Total | $ 8,025,000 | $ 290,000 |