Question

Stanford Company has contracted to build for the City of New London a new courthouse. The...

Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows: 2018 2019 2020 Costs to date $1,500,000 $4,000,000 $6,200,000 Cost to complete $4,500,000 $2,200,000 $0 Amounts billed to date $1,400,000 $5,800,000 $9,000,000 Amounts collected to date $1,300,000 $4,300,000 $9,000,000

Assume that Stanford uses the completed contract method. Determine the amount of revenue and expense to be recognized in:
                                    2018                2019               2020

Revenue

Expense

Homework Answers

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
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...
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 July 1, 2017, Torvill Construction Company Inc. contracted to build an office building for Gumbel...
On July 1, 2017, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2019, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2017, 2018, and 2019. At 12/31/17 At 12/31/18 At 12/31/19...
PRACTICAL QUESTION                                       &nb
PRACTICAL QUESTION                                                                                          Tiger Construction Ltd signs a contract on 1 May 2018 to build a theme park. The construction is scheduled to commence on 1 July 2018 and the estimated date of completion is 30 June 2021. The total contract price is $5m and the cost of the park is initially estimated at $4.5m. The following data relates to the construction period: For the year ended 30 June 2019 2020 2021 $ $ $ Costs to date 1,700,000 3,000,000 4,800,000...
Windham Construction Company uses the percentage of completion method of accounting. In 2018 Windham started work...
Windham Construction Company uses the percentage of completion method of accounting. In 2018 Windham started work on a two-year contract with a total price of $15,000,000. Data for 2018 and 2019 are presented below: (Follow GAAP)                                                                  2018                            2019                       Costs incurred to date             $7,200,000                  $12,050,000             Estimated costs to complete   4,800,000                         - 0 -             Billings during the year          6,000,000                      9,000,000             Collections during the year     4,200,000                      8,900,000 (a)       How much...
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...
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...
Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2018,...
Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2018, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,540,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred,...
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...
You are the new accounting manager at the Barry Transport Company. Your CFO has asked you...
You are the new accounting manager at the Barry Transport Company. Your CFO has asked you to provide input on the company's income tax position based on the following: Pretax accounting income was $62 million and taxable income was $10 million for the year ended December 31, 2018. The difference was due to three items: Tax depreciation exceeds book depreciation by $50 million in 2018 for the business complex acquired that year. This amount is scheduled to be $70 million...