1. Prepare all journal entries to record costs, billings, collections, and profit recognition. 2. Compute the Gross Profit on the job for each year. 3.Compute the ending Accounts Receivable for each year.
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- Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are: Costs incurred during the year Estimated costs to complete Dalton uses the percentage-of-completion method. 2021 $3,300,000 2,700,000 2022 $2,750,000 Instructions (a) How much revenue should be reported for 2021? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2021. (c) Make the entry to record the revenue and gross profit for 2021. (d) How much gross profit should be reported for 2022? Show your computation.Oriole Construction Company began work on a $420,000 construction contract in 2025. During 2025, Oriole incurred costs of $264, 500, billed its customber for $207,000, and collected $179,500. December 31, 2025, the estimated additional costs to complete the project total $159, 650. Prepare Oriole's journal entry to record profit or loss, if any, using (a) the percentage - of - completion method and (b) the cost-recovery method.29) Horner Construction uses the method. In percentage-of-completion 2024, Honer began work on a contract for $22,000,000; it was completed in 2025. The following cost data pertain to this contract: December 31 2025 2024 Cost Incurred during the year $5,600,000 Estimated costs to complete at the end of year $5,200,000 The amount of gross profit to be recognized on the income statement for the year ended December 31, 2025 is Year Ended A)$8,600,000 INCORRECT B)$3,440,000 C)$3,200,000 D)$3,600,000 $7,800,000
- Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2020, a single long-term project was begun, which continued through 2018 Information on the project follows: 12/31 Accounts Receivable balance Construction expenses for year Gross Profit recognized in year Bangs during year The 12/31/21 CIP balance is Select one O $50,000 Ob 1322,000 O 1619.000 Od $106.000 O $112,000 2020 $100,000 105,000 122,000 100,000 20121 $300.000 192,000 200,000 420.000Zent construction has an contract for $3,700,000. Other details follow:Costs incurred during the year= $1,800,000Estimated costs to complete as of December 31= 1,200,000Billings during the year=1,650,000Collections during the year= 975,000 It uses the percentage of completion method For calendar 2020, what should report gross profit of?BU Contractors received a contract to construct an office building for $19,000,000. Construction was begun in 2021 and completed in 2023. Cost and other data are presented below: Cost Incurred during the year Estimated total costs to complete 2021 7,650,000 9,350,000 2022 3,725,000 6,125,000 2023 6,625,000 6,000,000 7,000,000 6,000,000 5,500,000 7,100,000 6,400,000 Billings during the year Cash collections during the year BU recognizes revenue over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Compute the Gross Profit on the job for each year. Compute the ending Accounts Receivable for each year.
- The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to date December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are: Select one: O a. Current Liability of $1,500 O b. Current Liability of $200 c. Current Asset of $1,500 d. Current Liability of $875GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows: 2021. 2022 Partial billing on contract 1,000,000. 4,200,000 Accounts receivable 1,000,000 3,000,000 Construction cost 1,050,000 1,920,000 Construction in progress 1,220,000 3,640,000 What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively? 2021 2022 A.220,000. 2,280,000 B.170,000. 500,000 C.220,000. 1,000,000 D.170,000. 1,280,000The Leverenz Construction Company began work on a $15,000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of-Completion method is used. Given the following: Costs incurred to date Estimated costs to complete Billings to date Collections to date 2021 Net Income (Loss) is: Select one: O a. $(650) O b. $(200) O c. $(539) O d. $(89) e. $200 2020 $3,300 9,900 3,000 2,900 2021 $6,800 8,400 5,800 5,500 2022 $15,700 0 13,000 12,000
- Sheridan Construction Co. contracted to build a bridge for $9,900,000. Construction began in 2024 and was completed in 2025. Data relating to the construction are: 2024 2025 Costs incurred during the year $3,267,000 $2,723,000 Estimated costs to complete 2,673,000 ― Prepare the entry to record progress billings of $4,280,000 during 2024.Sheridan Construction Co. contracted to build a bridge for $10,500,000. Construction began in 2024 and was completed in 2025. Data relating to the construction are: Costs incurred during the year Estimated costs to complete (a) 2024 $4,095,000 Revenue $ 2,730,000 Sheridan uses the percentage-of-completion method. How much revenue should be reported for 2024? 2025 $2,780,000Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are: 2021 2022 Costs incurred during the year $3,300,000 $2,750,000 Estimated costs to complete 2,700,000 — Dalton uses the percentage-of-completion method. Instructions (a) How much revenue should be reported for 2021? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2021. (c) Make the entry to record the revenue and gross profit for 2021. (d) How much gross profit should be reported for 2022? Show your computation.