Long‐term contract based on percentage of completion method
Jim’s Construction Co. has a $6,800,000 contract which began on January 1, 2015 to build a new football stadium with an expected completion date of October 31, 2017. The following table provides information gathered during the construction period. Jim uses the percentage completion method to
account for this contract.
|
2015 |
2016 |
2017 |
|
|
Construction costs incurred during the year |
2,040,000 |
2,932,500 |
1,657,500 |
|
Estimated costs to complete |
3,060,000 |
1,657,500 |
0 |
|
Billings during the year |
1,360,000 |
1,632,000 |
3,808,000 |
|
Cash collected during year |
1,020,000 |
1,360,000 |
4,080,000 |
Prepare journal entry to record gross profit for 2015
Prepare all necessary journal entries for 2016.
********I would like to know the steps to soving these 2 questions*************
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$4,240,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 363,000 | $ | 2,688,000 | $ | 4,534,000 | |||||
| Estimated costs to complete | 3,267,000 | 1,792,000 | 0 | ||||||||
| Billings to Axelrod, to date | 724,000 | 2,250,000 | 4,240,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2021, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $5,020,000. The building was completed on December 31, 2023. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: At 12-31-2021 At 12-31-2022 At 12-31-2023 Percentage of completion 10 % 60 % 100 % Costs incurred to date $ 376,000 $ 3,234,000 $ 5,457,000 Estimated costs to complete 3,384,000 2,156,000 0 Billings to Axelrod, to date 737,000 2,510,000 5,020,000 Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2021 and 2022 as either cost in excess of billings or billings in excess of costs. Please help me solve this problem!
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$5,020,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 376,000 | $ | 3,234,000 | $ | 5,457,000 | |||||
| Estimated costs to complete | 3,384,000 | 2,156,000 | 0 | ||||||||
| Billings to Axelrod, to date | 737,000 | 2,510,000 | 5,020,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2021, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$4,480,000. The building was completed on December 31, 2023.
Estimated percentage of completion, accumulated contract costs
incurred, estimated costs to complete the contract, and
accumulated billings to Axelrod under the contract were as
follows:
| At 12-31-2021 | At 12-31-2022 | At 12-31-2023 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 367,000 | $ | 2,856,000 | $ | 4,818,000 | |||||
| Estimated costs to complete | 3,303,000 | 1,904,000 | 0 | ||||||||
| Billings to Axelrod, to date | 728,000 | 2,330,000 | 4,480,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years. Curtiss
concludes that the contract does not qualify for revenue
recognition over time.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2021 and 2022 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2018, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,660,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: At 12-31-2018 At 12-31-2019 At 12-31-2020 Percentage of completion 10 % 60 % 100 % Costs incurred to date $ 405,000 $ 2,940,000 $ 5,031,000 Estimated costs to complete 3,260,000 2,030,000 0 Billings to Axelrod, to date 885,000 2,390,000 4,660,000 Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 as either cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$5,080,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 377,000 | $ | 3,276,000 | $ | 5,528,000 | |||||
| Estimated costs to complete | 3,393,000 | 2,184,000 | 0 | ||||||||
| Billings to Axelrod, to date | 738,000 | 2,530,000 | 5,080,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
Curtiss Construction Company, Inc., entered into a fixed-price
contract with Axelrod Associates on July 1, 2018, to construct a
four-story office building. At that time, Curtiss estimated that it
would take between two and three years to complete the project. The
total contract price for construction of the building is
$4,780,000. Curtiss concludes that the contract does not qualify
for revenue recognition over time. The building was completed on
December 31, 2020. Estimated percentage of completion, accumulated
contract costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the contract
were as follows:
| At 12-31-2018 | At 12-31-2019 | At 12-31-2020 | |||||||||
| Percentage of completion | 10 | % | 60 | % | 100 | % | |||||
| Costs incurred to date | $ | 372,000 | $ | 3,066,000 | $ | 5,173,000 | |||||
| Estimated costs to complete | 3,348,000 | 2,044,000 | 0 | ||||||||
| Billings to Axelrod, to date | 733,000 | 2,430,000 | 4,780,000 | ||||||||
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years.
2. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute gross profit or loss
to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over time
according to percentage of completion, compute the amount to be
shown in the balance sheet at the end of 2018 and 2019 as either
cost in excess of billings or billings in excess of costs.
In: Accounting
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B.
a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)?
b. What is the probability that a hotel room costs less than $143 per night (to 4 decimals)?
c. What is the probability that a hotel room costs between $201 and $299 per night (to 4 decimals)?
d. What is the cost of the 20% most expensive
hotel rooms in New York City? Round up to the next dollar.
$ or - Select your answer -more less
In: Statistics and Probability
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night. Assume that room rates are normally distributed with a standard deviation of $55.
(a)
What is the probability that a hotel room costs $265 or more per night? (Round your answer to four decimal places.)
(b)
What is the probability that a hotel room costs less than $120 per night? (Round your answer to four decimal places.)
(c)
What is the probability that a hotel room costs between $210 and $300 per night? (Round your answer to four decimal places.)
(d)
What is the cost in dollars of the 10% most expensive hotel rooms in New York City? (Round your answer to the nearest cent.)
In: Statistics and Probability