Problem 18-09 Concord Construction Company has entered into a contract beginning January 1, 2020, to build...

Problem 18-09 Concord Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $891,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $260,580 $466,620 $618,000 Estimated costs to complete 345,420 139,380 –0– Progress billings to date 272,000 551,000 891,000 Cash collected to date 242,000 501,000 891,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If the answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If the answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ Please show working. Thank you.

Expert Solution

ekkarill92 answered 1 year ago

Teal Construction Company has entered into a contract beginning January 1, 2020, to build a parking...

Teal Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $597,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $908,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $286,560 $453,720 $609,000 Estimated costs to complete 310,440 143,280 –0– Progress billings to date 273,000 548,000 908,000 Cash collected to date...

Sheffield Construction Company has entered into a contract beginning January 1, 2020, to build a parking...

Sheffield Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $595,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $903,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $279,650 $487,900 $606,000 Estimated costs to complete 315,350 107,100 –0– Progress billings to date 272,000 545,000 903,000 Cash collected to date...

Waterway Construction Company has entered into a contract beginning January 1, 2020, to build a parking...

Waterway Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $901,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $246,000 $432,000 $612,000 Estimated costs to complete 354,000 168,000 –0– Progress billings to date 270,000 546,000 901,000 Cash collected to date...

Problem #2 Pedroni Construction Company has entered into a contract beginning January 1, 2107, to build...

Problem #2 Pedroni Construction Company has entered into a contract beginning January 1, 2107, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period. 2017 2018 2019 Costs to date $270,000 $450,000 $610,000 Estimated costs to complete 330,000 150,000 0 Progress billing to date 270,000 550,000 900,000 Cash...

Kingbird Construction Company has entered into a contract beginning January 1, 2017, to build a parking...

Kingbird Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. 2017 2018 2019 Costs to date $267,300 $463,320 $606,000 Estimated costs to complete 326,700 130,680 –0– Progress billings to date 268,000 547,000 896,000 Cash collected to date...

Ivanhoe Construction Company has entered into a contract beginning January 1, 2017, to build a parking...

Ivanhoe Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $599,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $905,000. The following data pertain to the construction period. 2017 2018 2019 Costs to date $257,570 $413,310 $609,000 Estimated costs to complete 341,430 185,690 –0– Progress billings to date 270,000 551,000 905,000 Cash collected to date...

Problem 18-09 Your answer is partially correct. Try again. Grouper Construction Company has entered into a...

Problem 18-09 Your answer is partially correct. Try again. Grouper Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $897,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $275,080 $412,620 $607,000 Estimated costs to complete 322,920 185,380 –0– Progress billings...

At the beginning of 2012, Massachusetts Road Construction entered into a contract to build a road...

At the beginning of 2012, Massachusetts Road Construction entered into a contract to build a road for the government. Construction will take 3 years. The following information as of December 31st, 2012 is available for the contract: Total revenue according to contract $15,000 Updated estimated cost in 2013-2014 period $7,200,000 Cost incurred during 2012 $4,800,000 Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the Percentage-of-Completion method, how much revenue...

Problem 3 An entity entered into a construction contract to build a condo building at a...

Problem 3 An entity entered into a construction contract to build a condo building at a fixed price of $54,000,000. Construction started in 20x0 and ended in 20x3. Data on the contract is as follows (in ‘000’s): 20x0 20x1 20x2 20x3 Costs incurred during the year $ 6500 19500 25000 5800 Estimated costs to complete 38500 26000 6500 - Billings 18000 18000 - 18000 For each of the parts below, prepare the ‘mini’ income statement for the project for each...

A construction company has entered into a contract to build a parking complex. It hsa been...

A construction company has entered into a contract to build a parking complex. It hsa been estimated the complex will cost 700,000 and will take three years to construct. The complex will be billed to the purchasing company at 1,200,000. Information is as follows. X1 YEAR. X2 YEAR X3 YEAR cost incurrect to date 350,000 490,000 700,000 estimated cost yet to be incurrect 350,000. 210,000. 0 customer billings to date 300,000. 650,000 1,200,000 collections of billings to date 250,000. 600,000....

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