On July 1, 2017, Torvill Construction Company Inc. contracted to
build an office building for Gumbel...
On July 1, 2017, Torvill Construction Company Inc. contracted to
build an office building for Gumbel Corp. for a total contract
price of $1,900,000. On July 1, Torvill estimated that it would
take between 2 and 3 years to complete the building. On December
31, 2019, the building was deemed substantially completed.
Following are accumulated contract costs incurred, estimated costs
to complete the contract, and accumulated billings to Gumbel for
2017, 2018, and 2019.
At 12/31/17
At 12/31/18
At 12/31/19...
On May 1, 2017, Collin Company contracted to construct a factory
building for a total contract...
On May 1, 2017, Collin Company contracted to construct a factory
building for a total contract price of $9,600,000. The building was
completed by May 31, 2019. The annual contract costs incurred,
estimated costs to complete the contract, and accumulated billings
to Fabrik for 2017, 2018, and 2019 are given below.
2017 2018 2019
Contract costs incurred during the year $3,400,000 $2,400,000
$2,900,000
Estimated costs to complete the contract at 12/31 4,600,000
3,100,000 -0-
Billings 1,200,000 4,100,000 4,300,000
Instructions(a) Using...
Problem 18-10
On March 1, 2020, Pearl Construction Company contracted to
construct a factory building for...
Problem 18-10
On March 1, 2020, Pearl Construction Company contracted to
construct a factory building for Fabrik Manufacturing Inc. for a
total contract price of $8,360,000. The building was completed by
October 31, 2022. The annual contract costs incurred, estimated
costs to complete the contract, and accumulated billings to Fabrik
for 2020, 2021, and 2022 are given below:
2020
2021
2022
Contract costs incurred during the year
$2,615,800
$2,633,000
$2,041,200
Estimated costs to complete the contract at 12/31
3,764,200
2,041,200...
On March 1, 2017, Pharoah Construction Company contracted to
construct a factory building for Fabrik Manufacturing...
On March 1, 2017, Pharoah Construction Company contracted to
construct a factory building for Fabrik Manufacturing Inc. for a
total contract price of $8,390,000. The building was completed by
October 31, 2019. The annual contract costs incurred, estimated
costs to complete the contract, and accumulated billings to Fabrik
for 2017, 2018, and 2019 are given below: 2017 2018 2019
2017 2018
2019
Contract costs incurred during the year $3,003,300 $2,179,700
$2,117,000
Estimated costs to complete the contract at 12/31 3,386,700...
On June 15, 2020, Lion Construction signed a $ 360,000 contract
to build a small building....
On June 15, 2020, Lion Construction signed a $ 360,000 contract
to build a small building. Lion estimated that the total cost would
be $ 320,000. Construction started immediately because the required
completion date was August 31, 2021. Lion’s relevant data relating
to this construction project were as follows:
2020
2021
Actual costs incurred $ 120,000 $
204,000
Estimated costs to complete
200,000
-0-
Progress billings
112,000 248,000
Collections 110,000
250,000
Instructions (show all supporting
calculations)
Calculate how much...
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 $40,000. 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 18,000 28,000
Collections to
date 5,000 15,000 26,000
If the company uses the percentage-of-completion method, the
gross profit to be recognized in 2021 is___________________________
.
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a...
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,210,000. During 2021, costs of $2,070,000 were incurred with
estimated costs of $4,070,000 yet to be incurred. Billings of
$2,570,000 were sent, and cash collected was $2,320,000.
In 2022, costs incurred were $2,570,000 with remaining costs
estimated to be $3,705,000. 2022 billings were $2,820,000 and
$2,545,000 cash was collected. The project was completed in 2023
after additional costs 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 liability of $___________should be shown on the
balance sheet at December 31, 2021 related...
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 liability of $___________should be shown on the
balance sheet at December 31, 2021 related...
On February 1, 2020, Bramble Contractors agreed to construct a
building at a contract price of...
On February 1, 2020, Bramble Contractors agreed to construct a
building at a contract price of $5,820,000. Bramble estimated total
construction costs would be $4,016,000 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. $1,506,000 $2,652,000
$4,610,000
Estimated costs to complete. 2,510,000 1,768,000 -0-
Customer billings to date 2,220,000 4,016,000 5,620,000
Collections to date 2,020,000 3,520,000 5,520,000
Fill in the...