5
Chapler 6 HW 6 Un June 15 20Z1. Sancerson Construction entercd into a long-term constuction contract to build a baseball staclium in Washington DC for $330 millian. The expected completion date is Apri 1 2023, juet in time for the 2023 hasehall season. Costs Incurmed and patumated costs to complrte ot yenr cnd for the life nf the contrmct ae as falliows ($ in milion 125 20 1 $en tco. Cost neiueeed ng th yar tstated coets to conplete as ot Deceeber 31 $1A 13e eBook Required: 1. Campate the reverue and grass profit will Sanderson report in ths 2021, 2072, anc 2073 Income statements related to this camract Juming Sunderson tecugnize revenue over te uctording to percentage of completon. 2. Cnmpute the revenue and oross oroit wl Sanderson repoit in hs 21, 07 , and 073 Inrome statemenis related to this contract assuming this oroject does not quality for revenue recognition over time. 3. Suppose he estimated costs to comolete at the end ot 2022 are S150 millon instead of 0 milon. Compute the amourt or revcnuc and gross profit or loss to be recognizcd In 2022 assumling Sanderson rccegnizes revenuc over timc according to peruentae of ccmplelon LC Complere rhls quesrlon by enrering your answers in the rabe helow. Required equired Recuired 2 Compute thc revenuc and pross protlt wll Sanderson report In ts 2021, 2022, and 2022 income statements rclatod to this contract suming Sanderson recagnires revenua. over time ancort ing to parcentage of completion. (rnter your answers in millinns. Ioss amounts hauld he indicated wth a minus sign. Usa parcentages as calculated and munded in the table belnw to arrive at your tinal anser.) show ieas Perccntages of completion Clws cenu Chovsnu s Actual ct5 in date EstUmated toral costs 2021 50 200 25.00% 241 1all 10 20 0 00% 2021 Recognizad in prior years Recegnized in 2021 Te dae Construction reven.ie Si Constructon panse 0 3 50 Stus piul l 10 100 2022 Recagnized In 2022 Ta date Recognized In prior years Cosuclion 1wwwnu 0 Constructon caponsc Gross proft oss) 2023 Ta date Recognized in prior years Recognized in 2023 Construction revan 3 3 CusuluiL VALNUNY Cinas p lnns Required 2 Required 1 Chapler 6 HW 6 Un June 15 20Z1. Sancerson Construction entercd into a long-term constuction contract to build a baseball staclium in Washington DC for $330 millian. The expected completion date is Apri 1 2023, juet in time for the 2023 hasehall season. Costs Incurmed and patumated costs to complrte ot yenr cnd for the life nf the contrmct ae as falliows ($ in milion 125 20 1 $en tco. Cost neiueeed ng th yar tstated coets to conplete as ot Deceeber 31 $1A 13e eBook Required: 1. Campate the reverue and grass profit will Sanderson report in ths 2021, 2072, anc 2073 Income statements related to this camract Juming Sunderson tecugnize revenue over te uctording to percentage of completon. 2. Cnmpute the revenue and oross oroit wl Sanderson repoit in hs 21, 07 , and 073 Inrome statemenis related to this contract assuming this oroject does not quality for revenue recognition over time. 3. Suppose he estimated costs to comolete at the end ot 2022 are S150 millon instead of 0 milon. Compute the amourt or revcnuc and gross profit or loss to be recognizcd In 2022 assumling Sanderson rccegnizes revenuc over timc according to peruentae of ccmplelon LC Complere rhls quesrlon by enrering your answers in the rabe helow. Required equired Recuired 2 Compute thc revenuc and pross protlt wll Sanderson report In ts 2021, 2022, and 2022 income statements rclatod to this contract suming Sanderson recagnires revenua. over time ancort ing to parcentage of completion. (rnter your answers in millinns. Ioss amounts hauld he indicated wth a minus sign. Usa parcentages as calculated and munded in the table belnw to arrive at your tinal anser.) show ieas Perccntages of completion Clws cenu Chovsnu s Actual ct5 in date EstUmated toral costs 2021 50 200 25.00% 241 1all 10 20 0 00% 2021 Recognizad in prior years Recegnized in 2021 Te dae Construction reven.ie Si Constructon panse 0 3 50 Stus piul l 10 100 2022 Recagnized In 2022 Ta date Recognized In prior years Cosuclion 1wwwnu 0 Constructon caponsc Gross proft oss) 2023 Ta date Recognized in prior years Recognized in 2023 Construction revan 3 3 CusuluiL VALNUNY Cinas p lnns Required 2 Required 1
