In 2018, Omega Construction began work on a contract with a
price of $850,000 and estimated...
In 2018, Omega Construction began work on a contract with a
price of $850,000 and estimated costs of $595,000. Data for each
year of the contract are as follows:
2018
2019
2020
Costs incurred during the year
$238,000
$319,600
$105,000
Estimated costs to complete
357,000
139,400
-0-
Partial billings
260,000
210,000
380,000
Collections
240,000
200,000
410,000
Assuming the performance obligation is satisfied over time, what
would be the gross profit in 2018?
Group of answer choices
$255,000
$425,000...
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...
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...
In 2017, Chicago Construction began work on a three-year
construction project to build a new performing...
In 2017, Chicago Construction began work on a three-year
construction project to build a new performing arts complex (the
"PAC"). Chicago uses the percentage-of-completion method of
accounting. At the end of 2017, the company completed 25% of the
project. The following financial statement information indicates
the results to date for the PAC at the end of 2017:
Actual Cost incurred in
2017
$35 million
Construction in progress (as of
12/31/2017)
$50 million
Accounts Receivable from construction billings (as of...
Revenue Recognition
In 2017, Chicago Construction began work on a three-year
construction project to build a...
Revenue Recognition
In 2017, Chicago Construction began work on a three-year
construction project to build a new performing arts complex (the
"PAC"). Chicago uses the percentage-of-completion method of
accounting. At the end of 2017, the company completed 25% of the
project. The following financial statement information indicates
the results to date for the PAC at the end of 2017:
Actual Cost incurred in 2017 $35 million
Construction in progress (as of
12/31/2017) $50
million
Accounts Receivable from construction billings (as...
Kiner, Inc. began work in 2018 on a
contract for €21,000,000. Other data are as follows:...
Kiner, Inc. began work in 2018 on a
contract for €21,000,000. Other data are as follows:
2018 2019
Costs incurred to date €9,000,000
€14,000,000
Estimated costs to complete 6,000,000
—
Billings to date 7,000,000
21,000,000
Collections to date 5,000,000
18,000,000
8. If Kiner uses the
percentage-of-completion method, the gross profit to be recognized
in 2018 is
A. €3,600,000.
B. €4,000,000.
C. €5,400,000.
D. €6,000,000.
9. If Kiner uses the cost-recovery
method, the gross profit to be recognized in 2019 is...
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,...