Question

In 2013, Thomas Jefferson contracted to build an airplane for $12,000,000. Data relating to the contract...

In 2013, Thomas Jefferson contracted to build an airplane for $12,000,000. Data relating to the contract are as follows: ($ in thousands) 2013 2014 Costs incurred during the year $2,000 $6,000 Estimated costs to complete as of year-end 6,000 - Billings during the year 6,000 6,000 Cash collections during the year 5,000 7,000 Determine the gross profit that Thomas Jefferson should recognize in both 2013 and 2014 using the percentage-of-completion method.

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
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___________________________ .
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...
A company began work in 2020 on a contract for $6,800. Other data are as follows:...
A company began work in 2020 on a contract for $6,800. Other data are as follows:                                                        2020                         2021 2020 2021 costs incurred to date $3,100 $5,600 Estimated Costs to complete 2,000 ----------- Billings to date 3,400 6,800 Collections to date 2,000 4,800 If the company uses the percentage-of-completion method, the gross profit to be recognized in 2021 is                          .
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 2012 and completed in 2013. 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...
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...
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...
In 2013, Long Construction Corporation began construction work under a three-year contract. The contract price is...
In 2013, Long Construction Corporation began construction work under a three-year contract. The contract price is $2,400,000. Long uses the percentage-of-completion method for financial reporting purposes. The financial statement presentation relating to this contract at December 31, 2013, is as follows:   Balance Sheet   Accounts receivable (from construction progress billings) $ 38,000        Construction in progress $ 160,000        Less: Billings on construction contract (150,000 )        Cost of uncompleted contracts in excess of billings 10,000 Income Statement   Income (before tax) on the contract...
Percentage-of-completion method. Arshdeep Builders contracted to build a high-rise for $35,000,000. Construction began in 2018 and...
Percentage-of-completion method. Arshdeep Builders contracted to build a high-rise for $35,000,000. Construction began in 2018 and is expected to be completed in 2020. Data for 2018 and 2019 are: Costs incurred to date Estimated costs to complete Arshdeep uses the percentage-of-completion method. Instructions 2018 $4,500,000 18,000,000 2019 $13,000,000 12,000,000 (a) How much gross profit should be reported for 2018? Show your computation. (b) How much gross profit should be reported for 2019? (c) Make the journal entry to record the...
During 2019, Almon Inc. started a construction job with a contract price of $8000. The job...
During 2019, Almon Inc. started a construction job with a contract price of $8000. The job was completed in 2019 and information for the three years of construction is as follows: 2019 2020 2021 TOTAL costs incurred to date (ie sum of all costs, for all years, incurred at the end of the year) $2,000 $4,500 $7,600 Estimated costs to complete (as estimated at year end) 5,000 2900 -0- Billings to date 2,200 6,000 8,000 Collections to date 1,600 4,800...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT