PCC began work on a $5,000,000 construction contract in 2022. During 2022, the company incurred costs of $1,500,000, billed the customer for $1,650,000, and collected $1,400,000. On December 31, 2022, the estimated future costs to complete is $2,500,000. In 2023, the company completed the construction at the estimated cost. PCC also billed and collected the remaining amount from the customer in 2023.

PCC began work on a $5,000,000 construction contract in 2022. During 2022, the company incurred costs of $1,500,000, billed the customer for $1,650,000, and collected $1,400,000. On December 31, 2022, the estimated future costs to complete is $2,500,000. In 2023, the company completed the construction at the estimated cost. PCC also billed and collected the remaining amount from the customer in 2023.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 57P

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please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,640,000 $ 2,300,000 $ 2,926,000 Estimated costs to complete as of year-end 6,160,000 2,660,000 0 Billings during the year 2,080,000 2,860,000 5,060,000 Cash collections during the year 1,840,000 2,800,000 5,360,000 Westgate recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Please help me by showing your solution in good accounting form Thank you! On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Billings Costs incurred Est'd Costs to complete 2022 10,500,000 5,460,000 20,540,000 2023 12,500,000 9,984,000 13,156,000 2024 14,440,000 15,756,000 - The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks. What is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000
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: 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.
Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following data were taken from the company’s files (see image below).1.What is the Percentage of completion in 2019?2.Using the same information above, how much is the cost incurred in 2019?3.Using the same information above, how much is the revenue to be recognized in 2020?4.Using the same information above, how much is the balance of the Construction in Progress at December 31, 2020?5. Using the same information above, how much is the income to be recognized in 2020?
On March 1, 2022, ABC Co. was contracted to construct a building for a customer at a total contract price of P16,500,000. The building was estimated to be completed in 2024. The following data were made available: 2022 2023 2024 Contract costs incurred P6,400,000 P5,200,000 P2,900,000 Estimated costs to complete 6,400,000 2,900,000 - Progress billings each year 6,400,000 7,000,000 3,100,000 How much is the realized gross profit for 2023?
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,604,000 $ 4,032,000 $ 1,940,400 Estimated costs to complete as of year-end 5,796,000 1,764,000 0 Billings during the year 2,040,000 4,596,000 3,364,000 Cash collections during the year 1,820,000 4,000,000 4,180,000 Westgate recognizes revenue over time according to percentage of completion. 3. Complete the information required below to prepare a partial balance sheet for 2024 and 2025 showing any items related to the contract. Note: Do not round intermediate calculations.
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In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 3,471,000 $ 4,005,000 $ 1,566,400 Estimated costs to complete as of year-end 5,429,000 1,424,000 0 Billings during the year 2,900,000 4,576,000 2,524,000 Cash collections during the year 2,700,000 4,500,000 2,800,000 Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit “Cash, Materials, etc.” for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit “Cash, Materials, etc.” for…
Guillen, Inc. began work on a $7,000,000 contract in 2020 to construct an office building. Guillen uses the completed-contract method. At December 31, 2020, the balances in certain accounts were Construction in Process $1,715,000, Accounts Receivable $240,000, and Billings on Construction in Process $1,000,000. Indicate how these accounts would be reported in Guillen's December 31, 2020, balance sheet.
1 Required information Skip to question [The following information applies to the questions displayed below.]In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,400,000 $ 3,600,000 $ 2,200,000 Estimated costs to complete as of year-end 5,600,000 2,000,000 0 Billings during the year 2,000,000 4,000,000 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000 Westgate recognizes revenue over time according to percentage of completion. Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
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Please help me by showing your solution in good accounting form. Thank you! In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM’s books: Progress Billings P2,000,000; Accounts Receivable P1,000,000; Construction in Progress P3,500,000, Costs incurred to date P2,800,000. For 2019, the balances are Progress Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000, Costs incurred to date 5,500,000. What is the percentage of completion in 2019? (Answer format: 1%, 20%, 50%)