5. Carla Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $600,000and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period.

		2020		2021		2022
Costs to date		$294,000		$432,000		$608,000
Estimated costs to complete		306,000		168,000		-0-
Progress billings to date		268,000		547,000		902,000
Cash collected to date		238,000		497,000		902,000

(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

Gross profit recognized in 2020		$
Gross profit recognized in 2021		$
Gross profit recognized in 2022		$

(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

Gross profit recognized in 2020		$
Gross profit recognized in 2021		$
Gross profit recognized in 2022		$

6.On July 1, 2020, Sweet Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Sweet estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022.

		At 12/31/20		At 12/31/21		At 12/31/22
Contract costs incurred to date		$304,000		$1,207,800		$2,089,200
Estimated costs to complete the contract		1,216,000		772,200		-0-
Billings to Gumbel		300,000		1,080,000		1,830,000

(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).)

2020
Costs to date (12/31/20)Estimated Total CostsEstimated Costs to CompletePercent CompleteRevenue RecognizedProfit / (Loss) Recognized in 2020		$
Profit / (Loss) Recognized in 2020Percent CompleteEstimated Total CostsRevenue RecognizedEstimated Costs to CompleteCosts to date (12/31/20)
Profit / (Loss) Recognized in 2020Revenue RecognizedPercent CompleteEstimated Costs to CompleteEstimated Total CostsCosts to date (12/31/20)		$
Percent CompleteCosts to date (12/31/20)Estimated Costs to CompleteEstimated Total CostsProfit / (Loss) Recognized in 2020Revenue Recognized			%
Estimated Costs to CompleteCosts IncurredEstimated Total CostsPercent CompleteProfit / (Loss) Recognized in 2020Revenue Recognized		$
Percent CompleteRevenue RecognizedEstimated Total CostsEstimated Costs to CompleteCosts IncurredProfit / (Loss) Recognized in 2020
Percent CompleteRevenue RecognizedCosts IncurredProfit / (Loss) Recognized in 2020Estimated Total CostsEstimated Costs to Complete		$

2021
Estimated Total CostsTotal Profit/LossProfit / (Loss) Recognized in 2021Costs to date (12/31/21)Gross Profit Recognized in 2020Profit/Loss Recognized in 2020Estimated Costs to CompleteContract Price		$
Profit / (Loss) Recognized in 2021Total Profit/LossEstimated Total CostsEstimated Costs to CompleteGross Profit Recognized in 2020Contract PriceProfit/Loss Recognized in 2020Costs to date (12/31/21)
Estimated Total CostsProfit / (Loss) Recognized in 2021Profit/Loss Recognized in 2020Gross Profit Recognized in 2020Contract PriceCosts to date (12/31/21)Total Profit/LossEstimated Costs to Complete
Contract PriceProfit/Loss Recognized in 2020Profit / (Loss) Recognized in 2021Total Profit/LossEstimated Costs to CompleteCosts to date (12/31/21)Gross Profit Recognized in 2020Estimated Total Costs
Contract PriceEstimated Costs to CompleteEstimated Total CostsCosts to date (12/31/21)Total Profit/LossProfit/Loss Recognized in 2020Profit / (Loss) Recognized in 2021Gross Profit Recognized in 2020		$
Costs to date (12/31/21)Estimated Costs to CompleteProfit/Loss Recognized in 2020Total Profit/LossEstimated Total CostsProfit / (Loss) Recognized in 2021Contract PriceGross Profit Recognized in 2020		$
Profit/Loss Recognized in 2020Estimated Costs to CompleteContract PriceEstimated Total CostsTotal Profit/LossProfit / (Loss) Recognized in 2021Costs to date (12/31/21)Gross Profit Recognized in 2020
Total Profit/LossContract PriceProfit/Loss Recognized in 2020Profit / (Loss) Recognized in 2021Estimated Costs to CompleteCosts to date (12/31/21)Estimated Total CostsGross Profit Recognized in 2020		$

2022
Total Profit/LossContract PriceGross Profit Recognized in 2021Profit/Loss Recognized in 2020Profit / (Loss) Recognized in 2022Profit/Loss Recognized in 2021Estimated Costs to CompleteCosts to date (12/31/22)Gross Profit Recognized in 2020Estimated Total Costs				$
Costs to date (12/31/22)Contract PriceProfit / (Loss) Recognized in 2022Profit/Loss Recognized in 2021Estimated Costs to CompleteProfit/Loss Recognized in 2020Total Profit/LossEstimated Total CostsGross Profit Recognized in 2020Gross Profit Recognized in 2021
Total Profit/LossProfit / (Loss) Recognized in 2022Costs to date (12/31/22)Profit/Loss Recognized in 2020Profit/Loss Recognized in 2021Estimated Costs to CompleteContract PriceGross Profit Recognized in 2021Gross Profit Recognized in 2020Estimated Total Costs
Estimated Costs to CompleteProfit/Loss Recognized in 2021Gross Profit Recognized in 2021Estimated Total CostsProfit / (Loss) Recognized in 2022Contract PriceProfit/Loss Recognized in 2020Total Profit/LossGross Profit Recognized in 2020Costs to date (12/31/22)				$
Profit/Loss Recognized in 2020Estimated Total CostsGross Profit Recognized in 2020Profit / (Loss) Recognized in 2022Costs to date (12/31/22)Total Profit/LossGross Profit Recognized in 2021Profit/Loss Recognized in 2021Estimated Costs to CompleteContract Price				$
Estimated Costs to CompleteProfit / (Loss) Recognized in 2021Total Profit/LossCosts to date (12/31/22)Profit / (Loss) Recognized in 2020Contract PriceEstimated Total CostsProfit / (Loss) Recognized in 2022		$
Contract PriceProfit / (Loss) Recognized in 2022Profit / (Loss) Recognized in 2020Profit / (Loss) Recognized in 2021Costs to date (12/31/22)Total Profit/LossEstimated Total CostsEstimated Costs to Complete
Estimated Costs to CompleteProfit/Loss Recognized in 2020Total Profit/LossProfit / (Loss) Recognized in 2022Costs to date (12/31/22)Profit/Loss Recognized in 2021Contract PriceGross Profit Recognized in 2021Gross Profit Recognized in 2020Estimated Total Costs				$

(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).)

2021
Estimated Costs to CompleteProfit / (Loss) Recognized in 2021Costs to date (12/31/21)Contract PriceEstimated Total Costs
Estimated Costs to CompleteCosts to date (12/31/21)Estimated Total CostsContract PriceProfit / (Loss) Recognized in 2021
Contract PriceProfit / (Loss) Recognized in 2021Estimated Total CostsCosts to date (12/31/21)Estimated Costs to Complete		$

2022
Profit / (Loss) Recognized in 2022Profit / (Loss) Recognized in 2021Total Profit / (Loss) on ContractContract PriceCosts Incurred		$
Profit / (Loss) Recognized in 2022Profit / (Loss) Recognized in 2021Costs IncurredTotal Profit / (Loss) on ContractContract Price
Profit / (Loss) Recognized in 2022Total Profit / (Loss) on ContractProfit / (Loss) Recognized in 2021Contract PriceCosts Incurred
Profit / (Loss) Recognized in 2021Costs IncurredProfit / (Loss) Recognized in 2022Total Profit / (Loss) on ContractContract Price
Contract PriceProfit / (Loss) Recognized in 2021Profit / (Loss) Recognized in 2022Total Profit / (Loss) on ContractCosts Incurred		$

eTextbook and Media

List of Accounts

Assistance Used

• Accounts Receivable
• Advertising Expense
• Allowance for Sales Returns and Allowances
• Billings on Construction in Process
• Cash
• Commission Expense
• Construction in Process
• Construction Expenses
• Cost of Goods Sold
• Cost of Installment Sales
• Deferred Gross Profit
• Delivery Expense
• Discount on Notes Receivable
• Estimated Inventory Returns
• Freight-Out
• Gain on Repossession
• Income Summary
• Installment Accounts Receivable
• Installment Sales Revenue
• Inventory
• Inventory on Consignment
• Loss from Long-Term Contracts
• Loss on Repossession
• Materials, Cash, Payables
• No Entry
• Notes Receivable
• Operating Expenses
• Parts Expense
• Purchases
• Realized Gross Profit
• Rent Revenue
• Repossessed Merchandise
• Retained Earnings
• Returned Inventory
• Revenue from Consignment Sales
• Revenue from Franchise Fees
• Revenue from Long-Term Contracts
• Sales Discounts
• Sales Discounts Forfeited
• Sales Returns and Allowances
• Sales Revenue
• Service Revenue
• Unearned Franchise Fees
• Unearned Sales Revenue
• Unearned Service Revenue
• Unearned Rent Revenue
• Unearned Warranty Revenue
• Warranty Expense
• Warranty Liability