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...
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...
Part A
Two days before the financial year end of 31 December 2019, a
major customer...
Part A
Two days before the financial year end of 31 December 2019, a
major customer requested WT Limited to defer delivering 100,000
units of Product A until 2 January 2020 because the customer’s
warehouse had already been closed for the New Year holidays. The
customer requested WT Limited to issue the invoice for the goods at
the current year end though the goods were delivered on 2 January
2020 and agreed to settle the amount within 30 days after...
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...
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...
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...
Sallys construction. is a construction company and recognizes
revenue, costs, and gross profit at project completion....
Sallys construction. is a construction company and recognizes
revenue, costs, and gross profit at project completion. At the
start of Year 1, Kip enters a contract to build an office building
for $100 million. The project is completed by the end of Year 2.
The following additional information is available for this project
(amounts in millions):
YEAR 1 YEAR 2
Costs incurred during each year
$20 $70
Costs expected in future
$60 0
sallys Year 2 revenue will be:
On June 15, 2018, Sanderson Construction entered into a
long-term construction contract to build a baseball...
On June 15, 2018, Sanderson Construction entered into a
long-term construction contract to build a baseball stadium in
Washington, D.C., for $330 million. The expected completion date is
April 1, 2020, just in time for the 2020 baseball season. Costs
incurred and estimated costs to complete at year-end for the life
of the contract are as follows ($ in millions):
2018
2019
2020
Costs incurred during the year
$
90
$
70
$
45
Estimated costs to complete as of...
On June 1, 2020, Roman Construction Company Inc. contracted to
build an office building for Sicily...
On June 1, 2020, Roman Construction Company Inc. contracted to
build an office building for Sicily Corp. for a total contract
price of $2,600,000. On July 1, Roman estimated that it would take
between 2 and 3 years to complete the building. On December 31,
2022, the building was substantially completed. Following are
accumulated contract costs incurred, estimated costs to complete
the contract, and accumulated billings to Sicily 2020, 2021, and
2022.
2020
2021
2022
Costs incurred to date
$600,000...
In 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa...
In 2018, 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 2020. Information related to
the contract is as follows:
2018
2019
2020
Cost incurred during the year
$
2,580,000
$
4,042,000
$
2,175,800
Estimated costs to complete as of year-end
6,020,000
1,978,000
0
Billings during the year
2,060,000
4,562,000
3,378,000
Cash collections during the year
1,830,000
4,200,000
3,970,000
Westgate recognizes revenue over time according to...