D E G 1 Question 3 - Revenue Recognition (16 marks) **Only the blue cells will be graded. 2 3 In January 2020, Orryan Construction Corp. contracted to construct a building for $6,100,000. Construction started in early 2020 and was completed in 2021. The following additional information is available: 4 15 1000 2020 2021 7 Costs incurred for the year $ 2.430,000 $ 2,700,000 8 Estimated costs to complete 2,600,000.00 Billings and collections during the year 2,400,000 3,700,000 10 11 Orryan uses the percentage-of-completion method. Year end is December 31. 12 Here is the template we have used in class. You can use this to help formulate your response but only the blue cells will be graded. 9 13 2020 2021 14 15 1. Calculated the % complete 16 2. Estimate revenue to be reconized to date 17 3. Determine current period revenue to recognize 18 4. Calculate gross profit: 19 Current period costs 20 Current perio gross profit 21 22 Required: 24 Using the percentage-of-completion method: 25 6 1. How much revenue should Orryan report for 2020 and 2021? Show your calculations. (4 marks) 7 Please calculate your response here. 2020 1 Calculate the % completed 93.46% 2 EStimate revenue to be recognised $ 5,701,153.85 2021 11 10 Orryan uses the percentage-of-completion method. Year end is December 31, Here is the template we have used in class. You can use this to help formulate your response but only the blue cells will be graded. 13 14 2020 2021 15 1. Calculated the % complete 16 2. Estimate revenue to be reconized to date 17 3. Determine current period revenue to recognize 18 4. Calculate gross profit 19 Current period costs 20 Current perio gross profit 21 22 Required: 23 24 Using the percentage-of-completion method: 25 26 1 How much revenue should Orryan report for 2020 and 2021? Show your calculations. (4 marks) 27 2020 2021 28 Please calculate your response here. 93.46% 29 1 Calculate the % completed $ 5,701.153.85 30 2 Estimate revenue to be recognised 31 32 33 34 Question 4 Cash an Question 3 Revenue Recognition Question 2 Measurement MI Cover Sheet Question 1 Multiple Choice