Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I did all the process in an excel sheet, but answers keep coming up wrong. The only correct one I got was gross profit recog.
I did all the process in an excel sheet, but answers keep coming up wrong. The only correct one I got was gross profit recog. for 2018. Any help is appreciated.
On February 1, 2016, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,275,000. During 2016, costs of $2,110,000 were incurred, with estimated costs of $4,110,000 yet to be incurred. Billings of $2,632,000 were sent and cash collected was $2,360,000 In 2017, costs incurred were $2,632,000 with remaining costs estimated to be $3,765,000. 2017 billings were $2,882,000, and $2,585,000 cash was collected. The project was completed in 2018 after additional costs of $3.910,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. Revenue ross profit (loss Year recognized recognized 2016 2017 2018 (145,000) S 0 Total (145,000)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started