Ayayai Construction Company began operations on January 1, 2020.
During the year, Ayayai Construction entered into a contract with
Lundquist Corp. to construct a manufacturing facility. At that
time, Ayayai estimated that it would take 5 years to complete the
facility at a total cost of $4,498,000. The total contract price
for construction of the facility is $6,045,000. During the year,
Ayayai incurred $1,184,040 in construction costs related to the
construction project. The estimated cost to complete the contract
is $4,197,960. Lundquist Corp. was billed and paid 25% of the
contract price.
Prepare schedules to compute the amount of gross profit to be
recognized for the year ended December 31, 2020, and the amount to
be shown as “costs and recognized profit in excess of billings” or
“billings in excess of costs and recognized profit” at December 31,
2020, under each of the following methods
I HOPE ITS USEFUL TO YOU, I NEED POSITIVE RATING PLZ.
Get Answers For Free
Most questions answered within 1 hours.