Question

Hardhat Contractors received a contract to construct a bridge for $4,500,000. Construction was begun in 2014...

Hardhat Contractors received a contract to construct a bridge for $4,500,000. Construction was begun in 2014 and completed in 2015. Cost and other data are presented below:

2014 2015
Costs incurred during the year 1,500,000 2,700,000
Estimated costs to complete 2,500,000 -
Billings during the year 1,900,000 2,500,000
Cash collections during that year 1,700,000 2,600,000

Assume that Hardhat Contractors uses the percentage-of-completion method for revenue recognition. Compute the amount of gross profit recognized during 2014 and 2015.

2014 2015
Contract price
Actual costs to date
Estimated costs to complete
Total estimated costs
Gross profit
Now compute the percent completed: 2014 2015
Costs to date/total estimated costs=
Gross profit
Previously recognized
Gross profit year
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
McCombs Contractors received a contract to construct a mental health facility for $2,500. Construction was begun...
McCombs Contractors received a contract to construct a mental health facility for $2,500. Construction was begun in 2017 and completed in 2018. Cost and other data are presented below:                                                                         2017                2018 Costs incurred during the year                         $1,500 $1,300 Estimated costs to complete                              1,200 0 Billings during the year                                    1,200 1,300 Cash collections during the year                        1,000 1,500 Compute the amount of revenue and gross profit recognized during 2017 and 2018. Assume that McCombs recognizes revenue on this contract over...
In 2021, the Southgate Construction Company entered into a contract to construct a bridge for $12,000,000....
In 2021, the Southgate Construction Company entered into a contract to construct a bridge for $12,000,000. The bridge was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $1,840,000 $3,760,000 $4,500,000 Estimated costs to complete as of year-end $6,160,000 $4,400,000 $0 Billings during the year $3,000,000 $4,000,000 $5,000,000 Cash collections during thee year $2,600,000 $3,900,000 $5,100,000 Southgate recognizes revenue using the completed contract method. What amount will Southgate show on...
Beavis Construction Company was the low bidder on a construction project to build an earthen dam...
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2015 and completed in 2016. Cost and other data are presented below: 2012 2013   Costs incurred during the year $ 450,000 $1,100,000      Estimated costs to complete 1,050,000 0      Billings during the year 400,000 1,400,000      Cash collections during the year 300,000 1,500,000    Assume that Beavis recognizes revenue on this contract over time according to...
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...
Circle the correct answer symbol 6.Imar Construction company signed a contract to build new bridge at...
Circle the correct answer symbol 6.Imar Construction company signed a contract to build new bridge at a contract price of $5,000,000 and total estimated cost of $4,000,000 the project will be completed within 4 years, the cost incurred to date for each period is, first year $1,000,000- second year $2,500,000- third year $3,200,000 and fourth year $4,100,000 while the estimasted cost to, complete the project for each each period is, first year $3,000,000- second year $1,700,000- third year $1,000,000 and...
In 2016 the ole construction corp began construction work under a 3 year contract. The contract...
In 2016 the ole construction corp began construction work under a 3 year contract. The contract price was $1,600,000. The Job was completed in 2018.                                                                                 2016                       2017                       2018 Costs incurred to date                                    400000                  935000                  1070000 Estimated costs to complete                       700000                  165000                  0 Billings to date                                                  300000                  900000                  1600000 Collections to date                                           270000                  810000                  1525000 Compute the amount of Gross Profit to be recognized for 2016 and 2017 assuming that ole is required to recognize revenue overtime. Compute the...
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...
Imar Construction company signed a contract to build new bridge at a contract price of $5,000,000...
Imar Construction company signed a contract to build new bridge at a contract price of $5,000,000 and total estimated cost of $4,000,000 the project will be completed within 4 years, the cost incurred to date for each period is, first year $1,000,000- second year $2,500,000- third year $3,200,000 and fourth year $4,100,000 while the estimasted cost to, complete the project for each each period is, first year $3,000,000- second year $1,700,000- third year $1,000,000 and fourth year is $0, based...
Tamarisk Construction Company has entered into a contract beginning January 1, 2017, to build a parking...
Tamarisk 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 $601,000 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. 2017 2018 2019 Costs to date $270,450 $492,820 $613,000 Estimated costs to complete 330,550 108,180 –0– Progress billings to date 273,000 550,000 903,000 Cash collected to date...
During 2020, Blossom Company started a construction job with a contract price of $1,610,000. The job...
During 2020, Blossom Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $393,900 $760,380 $1,059,000 Estimated costs to complete 616,100 341,620 –0– Billings to date 299,000 905,000 1,610,000 Collections to date 268,000 818,000 1,421,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 $enter a dollar...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT