Salmania Co. began working on a project on August 2019, to construct a BD8,250,000 bridge that is expected to be completed in October 2020, at an estimated cost of BD6,000,000. At the end of 2019, the costs to date were BD2,400,000 and the estimated total costs to complete had not changed. The progress billings during 2019 were BD1,600,000 and the cash
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- Moonlight Construction Company had a contract starting April 2020, to construct a P9,000,000 building that is expected to be completed in September 2022, at an estimated cost of P8,250,000. At the end of 2020, the costs to date were P3,795,000 and the estimated total costs to complete had not changed. The progress billings during 2020 were P1,800,000 and the cash collected during 2020 was 1,200,000. At December 31, 2020 Moonlight would report Construction in Process in the amount of:Cardinal Construction Company had a contract starting April 2020, to construct a P9,000,000 building that is expected to be completed in September 2022, at an estimated cost of P8,250,000. At the end of 2020, the costs to date were P3,795,000 and the estimated total costs to complete had not changed. The progress billings during 2020 were P1,800,000 and the cash collected during 2020 was 1,200,000. For the year ended December 31, 2020, Cardinal would recognize gross profit on the building of:Suneilert Construction Company had a contract starting April 2021, to construct a P15,000,000 building that is expected to be completed in September 2022, at an estimated cost of P13,750,000. At the end of 2021, the costs to date were P6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were P3,000,000 and the cash collected during 2021 was P2,000,000. Suneilert uses the percentage-of-completion method.For the year ended December 31, 2021, Suneilert would recognize gross profit on the building of?
- Khodra Construction had a contract starting April 2021, to construct a $9,000,000 highway that is expected to be completed in September 2023, at an estimated cost of $8,250,000. At the end of 2021, the costs to date were $3,795,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $1,800,000 and the cash collected during 2021 was 1,200,000. What amount of Construction in Process should Khodra Construction have reported at December 31, 2021? $Alert Construction Company had a contract starting April 2021, to construct a $15,000,000 building that is expected to be completed in September 2022, at an estimated cost of $13,750,000. At the end of 2021, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3,000,000 and the cash collected during 2021 was $2,000,000. Alert uses the percentage-of-completion method. What amount would Alert report for Construction in Process at December 31, 2021?On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,075,000. During 2021, costs of $2,030,000 were incurred, with estimated costs of $4,030,000 yet to be incurred. Billings of $2,536,000 were sent, and cash collected was $2,280,000. In 2022, costs incurred were $2,536,000 with remaining costs estimated to be $3,645,000. 2022 billings were $2,786,000, and $2,505,000 cash was collected. The project was completed in 2023 after additional costs of $3,830,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required:1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred).2b. Prepare journal entries for 2022 to record the transactions described (credit…
- On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2024, costs of $2,000,000 were incurred with estimated costs of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent, and cash collected was $2,250,000. In 2025, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2025 billings were $2,750,000, and $2,475,000 cash was collected. The project was completed in 2026 after additional costs of $3,800,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 2a. Prepare journal entries for 2024 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 2b. Prepare journal entries for 2025 to record the transactions…On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,375,000. During 2024, costs of $2,150,000 were incurred, with estimated costs of $4,150,000 yet to be incurred. Billings of $2,680,000 were sent, and cash collected was $2,400,000. In 2025, costs incurred were $2,680,000 with remaining costs estimated to be $3,825,000. 2025 billings were $2,930,000, and $2,625,000 cash was collected. The project was completed in 2026 after additional costs of $3,950,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,375,000. During 2024, costs of $2,150,000 were incurred, with estimated costs of $4,150,000 yet to be incurred. Billings of $2,680,000 were sent, and cash collected was $2,400,000. In 2025, costs incurred were $2,680,000 with remaining costs estimated to be $3,825,000. 2025 billings were $2,930,000, and $2,625,000 cash was collected. The project was completed in 2026 after additional costs of $3,950,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time. . Prepare journal entries for 2024 and 2025 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred).
- On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,375,000. During 2024, costs of $2,150,000 were incurred, with estimated costs of $4,150,000 yet to be incurred. Billings of $2,680,000 were sent, and cash collected was $2,400,000. In 2025, costs incurred were $2,680,000 with remaining costs estimated to be $3,825,000. 2025 billings were $2,930,000, and $2,625,000 cash was collected. The project was completed in 2026 after additional costs of $3,950,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2024 and prepare a seperate balance sheet for 2025.On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,375,000. During 2024, costs of $2,150,000 were incurred, with estimated costs of $4,150,000 yet to be incurred. Billings of $2,680,000 were sent, and cash collected was $2,400,000. In 2025, costs incurred were $2,680,000 with remaining costs estimated to be $3,825,000. 2025 billings were $2,930,000, and $2,625,000 cash was collected. The project was completed in 2026 after additional costs of $3,950,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time. 1. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2024. 2. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2025.On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to builda bridge for a price of $8,000,000. During 2018, costs of $2,000,000 were incurred, with estimated costs of$4,000,000 yet to be incurred. Billings of $2,500,000 were sent, and cash collected was $2,250,000.In 2019, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2019 billings were$2,750,000, and $2,475,000 cash was collected. The project was completed in 2020 after additional costs of$3,800,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time.Required:1. Calculate the amount of gross profit or loss to be recognized in each of the three years.2. Prepare journal entries for 2018 and 2019 to record the transactions described (credit “various accounts” forconstruction costs incurred).3. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018…