Question

Georgia Co. began a construction project in 2021 with a contract price of $162 million to...

Georgia Co. began a construction project in 2021 with a contract price of $162 million to be received when the project is completed in 2023. During 2021, Georgia incurred $30 million of costs and estimates an additional $82 million of costs to complete the project. Georgia recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.

  

In 2022, Georgia incurred additional costs of $59 million and estimated an additional $38 million in costs to complete the project. Indiana (Do not round your percentage calculated):

Recognized $10.00 million gross profit on the project in 2022.

Recognized $35.00 million gross profit on the project in 2022.

Recognized $11.14 million gross profit on the project in 2022.

Recognized $33.50 million gross profit on the project in 2022.

Homework Answers

Answer #1
  • Correct Answer = Option #3

Recognized $11.14 million gross profit on the project in 2022. [Closest to $ 11.13 calculated below]

  • Working

2021

2022

Contract Price

$162

$162

Cost Incurred to Date

$30

$89

Estimated cost yet to be incurred to complete the contract

$82

$38

Total Cost

$112

$127

% of Completion

26.79%

70.08%

Revenue to date

$43.39

$113.53

Revenue of Previous year

$0.00

$43.39

Net Revenue this year

$43.39

$70.13

Cost to date

$30.00

$89.00

Cost to date of previous year

$0.00

$30.00

Net Cost for the year

$30.00

$59.00

Gross Profits

$13.39

$11.13


Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Indiana Co. began a construction project in 2021 with a contract price of $165 million to...
Indiana Co. began a construction project in 2021 with a contract price of $165 million to be received when the project is completed in 2023. During 2021, Indiana incurred $32 million of costs and estimates an additional $87 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. In 2022, Indiana incurred additional costs of $52 million and estimated...
Indiana Co. began a construction project in 2021 with a contract price of $165 million to...
Indiana Co. began a construction project in 2021 with a contract price of $165 million to be received when the project is completed in 2023. During 2021, Indiana incurred $30 million of costs and estimates an additional $81 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2022, Indiana incurred additional costs of $65 million...
Indiana Co. began a construction project in 2021 with a contract price of $164 million to...
Indiana Co. began a construction project in 2021 with a contract price of $164 million to be received when the project is completed in 2023. During 2021, Indiana incurred $30 million of costs and estimates an additional $83 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. In 2022, Indiana incurred additional costs of $50 million and estimated...
Indiana Co. began a construction project in 2021 with a contract price of $164 million to...
Indiana Co. began a construction project in 2021 with a contract price of $164 million to be received when the project is completed in 2023. During 2021, Indiana incurred $36 million of costs and estimates an additional $88 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Multiple Choice: A) Recognized $36.00 million loss on the project in...
Indiana Co. began a construction project in 2018 with a contract price of $162 million to...
Indiana Co. began a construction project in 2018 with a contract price of $162 million to be received when the project is completed in 2020. During 2018 Indiana Incurred $32 million of costs and estimates and additional $85 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Supposed that in 2019, Indiana Incurred additional costs of $63 million...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,072,000 $ 2,738,000 $ 2,849,000 Estimated costs to complete as of year-end 5,328,000 2,590,000 0 Billings during the year 2,160,000 2,650,000 5,190,000 Cash collections during the year 1,880,000 2,700,000 5,420,000 Westgate recognizes revenue over time according to...
1. On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an...
1. On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $5,400 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount of Multiple Choice a. $900 b. $2,700 c. $0 d. $5,400 2. Mary signed up and...
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...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,604,000 $ 4,032,000 $ 1,940,400 Estimated costs to complete as of year-end 5,796,000 1,764,000 0 Billings during the year 2,040,000 4,596,000 3,364,000 Cash collections during the year 1,820,000 4,000,000 4,180,000 Westgate recognizes revenue over time according to...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs to complete as of year-end 5,810,000 1,826,000 0 Billings during the year 2,030,000 4,444,000 3,526,000 Cash collections during the year 1,815,000 3,900,000 4,285,000 Westgate recognizes revenue over time according to...