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...
During 2018, Miners Inc. started a construction job with a
contract price of $20,000. The job...
During 2018, Miners Inc. started a construction job with a
contract price of $20,000. The job was completed in 2020 and
information for the three years of construction is as follows:
Required:
Using the PERCENTAGE-OF-COMPLETION (cost-to-cost)
method:
Show and label all calculations.
(a)
Calculate the total percentage complete for the
contract at the end of each year. Round the percentage complete to
two decimal places (ie. 12.34%).
(b)
Calculate the amount of gross profit that
Miners should be recognized each...
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...