During 2021, a company started a construction job with a contract price of $277,800. The job was completed in 2023. The following information is available. 2021 2022 2023 Costs incurred to date $40,000 $88,000 $181,940 Estimated costs to complete 210,000 112,000 -0- Billings to date 30,000 142,480 185,000 Collections to date 20,000 40,000 130,000 If the completed-contract method of accounting is used, the amount of gross profit to be recognized in year 2023 will be $____________.
During 2021, a company started a construction job with a contract price of $277,800. The job was completed in 2023. The following information is available. 2021 2022 2023 Costs incurred to date $40,000 $88,000 $181,940 Estimated costs to complete 210,000 112,000 -0- Billings to date 30,000 142,480 185,000 Collections to date 20,000 40,000 130,000 If the completed-contract method of accounting is used, the amount of gross profit to be recognized in year 2023 will be $____________.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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Question
During 2021, a company started a construction job with a contract price of $277,800. The job was completed in 2023. The following information is available.
|
2021 |
2022 |
2023 |
|
|
Costs incurred to date |
$40,000 |
$88,000 |
$181,940 |
|
Estimated costs to complete |
210,000 |
112,000 |
-0- |
|
Billings to date |
30,000 |
142,480 |
185,000 |
|
Collections to date |
20,000 |
40,000 |
130,000 |
If the completed-contract method of accounting is used, the amount of gross profit to be recognized in year 2023 will be $____________.
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