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Can someone please help with the ones in RED? Thank you! On July 1, 2020, Sarasota Construction Company Inc. contracted to build an office building
Can someone please help with the ones in RED? Thank you!
On July 1, 2020, Sarasota Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1 , Sarasota 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. (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).) 2021 Costs to date (12/31/21) $ 1185900 \begin{tabular}{|lrr|} \hline Estimated Costs to Complete & & 824100 \\ \hline Estimated Total Costs & & 2010000 \\ \hline Contract Price & & -1900000 \\ \hline Total Profit/Loss & & 110000 \\ \hline \end{tabular} Total Profit/Loss $ 110000 Gross Profit Recognized in 2020 113600 Profit / (Loss) Recognized in 2021 $ 223600 2022 Costs to date (12/31/22) $2109700 Estimated Costs to Complete Contract Price Total Profit/Loss Total Profit/Loss $209700 Profit / (Loss) Recognized in 2020 $223600 Profit / (Loss) Recognized in 2021 113600 110000 Profit / (Loss) Recognized in 2022 VStep by Step Solution
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