During 2025, Oriole Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $380,000 $847,770 Gross profit recognized in 2026 620,000 Gross profit recognized in 2027 302,000 272,000 Gross profit recognized in 2025 $ 2026 $ $ 253,230 896,000 812,000 2027 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. $1,069,000 -0- 1,610,000 1,418,000

During 2025, Oriole Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $380,000 $847,770 Gross profit recognized in 2026 620,000 Gross profit recognized in 2027 302,000 272,000 Gross profit recognized in 2025 $ 2026 $ $ 253,230 896,000 812,000 2027 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. $1,069,000 -0- 1,610,000 1,418,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During 2025, Blossom Company started a construction job with a contract price of $1,590,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 2026 $366,300 $831,440 623,700 262,560 297,000 894,000 270,000 816,000 Gross profit recognized in 2025 Gross profit recognized in 2026 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2027 2027 $1,067,000 $ -0- 1,590,000 1,417,000.
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