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(15 points) Collmier Construction specializes in the construction of comme contractor is experienced in bidding long-term construction projects of this to project lasting thirteen to

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(15 points) Collmier Construction specializes in the construction of comme contractor is experienced in bidding long-term construction projects of this to project lasting thirteen to thirty-six months. The company uses the percent method of revenue recognition since, given the characteristics of the business a the most appropriate method. Progress toward completion is measured on an Collmler began work on a lump-sum contract at the beginning of 2019. As bid the as follows: astruction of commercial buildings. The on projects of this type, with the typical ny uses the percentage-of-completion cteristics of the business and contracts, it is stion is measured on a cost-to-cost basis. inning of 2019. As bid, the statistics were no $8.000.000 Lump-sum price (contract price) Estimated costs Labor Materials and subcontractor Indirect costs costoboorte inebut $1,700,000 3,500,000 800.000 meint ont au- 6.000.000 $2.000.000 $4.400.000 At the end of the first year, the following was the status of the contract: Billings to date Costs incurred to date algu Labor $ 928,000 Bon Materials and subcontractor s no 1,396,000 Bane Indirect costs ob 2010 386,000 Latest forecast total cost otvoro s 2.710.000 6,000,000 It should be noted that included in the above costs incurred to date were standard electrical and mechanical materials stored on the job site, but not yet installed, costing $100,000. These costs should not be considered in the costs incurred to date. Instructions (a) Compute the percentage of completion on the contract at the end of 2019. (CMake the journal entry to record the income (loss) for 2019 on Collmier's books. (d) Indicate the account(s) and the amount(s) that would be shown on the balance sheet of Collmier Construction at the end of 2019 related to its construction accounts. Also indicate where these items would be classified on the balance sheet. Billings collected during the year amounted to $3,500,000. (e) Assume that instead of total costs being estimated at $6,000,000, the latest forecast on total costs at the end of 2019 was $8,120,000. How much income (loss) would Collmier report for the year 2019? od row 500 MORS SUR

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