Imar Construction company signed a contract to build
new bridge at a contract price of $5,000,000...
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 fourth year is $0, based...
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...
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6.Imar Construction company signed a contract to build new
bridge at...
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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...
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
$8,225,000. During 2021, costs of $2,090,000 were incurred, with
estimated costs of $4,090,000 yet to be incurred. Billings of
$2,608,000 were sent, and cash collected was $2,340,000.
In 2022, costs incurred were $2,608,000 with remaining costs
estimated to be $3,735,000. 2022 billings were $2,858,000, and
$2,565,000 cash was collected. The project was completed in 2023
after additional costs of...
Marle Construction enters into a contract with a customer to
build a warehouse for $950,000 on...
Marle Construction enters into a contract with a customer to
build a warehouse for $950,000 on March 30, 2018 with a performance
bonus of $50,000 if the building is completed by July 31, 2018. The
bonus is reduced by $10,000 each week that completion is delayed.
Marle commonly includes these completion bonuses in its contracts
and, based on prior experience, estimates the following completion
outcomes:
Completed by
Probability
July 31, 2018
65%
August 7, 2018
25%
August 14, 2018
5%...
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...
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...
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...