Chapter 6 - Assignments 6 and 7 0 30 Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2018, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,600,000. Curtiss concludes that the contract does not qualify for revenue recognition over time. The building was completed on December 31, 2020. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: At 12-31-2019 At 12-31 - 2020 At 12-31-2018 lek $ 369,000 $2.54, Percentage of completion Costs incurred to date Estimated costs to complete Billings to Axelrod, to date 54,960,000 738, Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 as either cost in excess of billings or billings in excess of costs. References Complete this question by entering your answers in the tabs below. Req Land 2 Meg 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years. (Leave no cells blank be certain to enter wherever required. Loss amounts should be indicated with a minus sign.) Show less Y Gross Profit loss) Recognized Upon Completion Reg2 Gross Profit (Loss) Recognized Over Time 2018 2019 2020 Total project profit (los) Required: 1. Compute gross profit or loss to ognized as a result of this contract for each of the three years. 2. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to recognized in each of the three years. 3. Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be show balance sheet at the end of 2018 and 2019 as either cost in excess of billings or billings in excess of costs. Complete this question by entering your answers in the tabs below. Req land 2 Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of 2018 and 2019 as either cost in excess of billings or billings in excess of costs. Balance Sheet (Partial) 2018 2019 Current assets Current liabilities
