Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2021, 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 $4,000,000. The building was completed on December 31, 2023. 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: Percentage of completion Costs incurred to date Latinated costs to complete Dilling to Xelrod, to data At 12-31-2021 At 12-31-2022 At 12-31-202) 104 605 1008 $ 350,000 $2,500,000 $4,250,000 3,150,000 1,700,000 0 720,000 2,170,000 4,000,000 Required: 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years, Curtiss concludes that the contract does not qualify for revenue recognition over time. 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 2021 and 2022 as either cost in excess of billings or billings in excess of costs. Return to question 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 2021 and 2022 as either cost in excess of billings or billings in excess of costs. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time. 2. Assuming Curtis 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 "0" wherever required. Loss amounts should be indicated with a minus sign) Show less Year Regt Gross Profit (Loss) Recognized Con Completion 2021 2022 2023 Total project proto Reg2 Gross Profit (LOS) Recognized Over Time 50.000 (250,000) (30,000) (250.000 (200,000) (50.000) (250.000) 5 Req3 > 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 2021 and 2022 as elther cost in excess of billings or billings in excess of costs. Answer is not complete. Complete this question by entering your answers in the tabs below. Rec 1 and 2 Reg 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 2021 and 2022 as either cost in excess of billings or billings in excess of costs. Balance Sheet (Partian 2021 2022 Current assets Costs less tes in excess of bilinge Current abilities: Bilings in excess of costs and profit
