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I NEED HELP WITH THE INCORRECT ANSWERS PLEASE On July 1, 2020, Pina Construction Company Inc. contracted to build an office building for Gumbel Corp.
I NEED HELP WITH THE INCORRECT ANSWERS PLEASE
On July 1, 2020, Pina Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Pina 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. At 12/31/20 At 12/31/21 Contract costs incurred to date $1,188,000 At 12/31/22 $2,083,300 -0- 1,850,000 $285,000 1,215,000 300,000 Estimated costs to complete the contract Billings to Gumbel 792,000 1,100,000 (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 o, 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).) 2020 Costs to date (12/31/20) $ 285000 Estimated Costs to Complete 1215000 Estimated Total Costs $ 1500000 Percent Complete 19 % Revenue Recognized $ 359100 Costs Incurred 285000 Profit/(Loss) Recognized in 2020 $ 74100 2021 Costs to date (12/31/21) $ 1188000 Estimated Costs to Complete 792000 Estimated Total Costs 1980000 Contract Price 1890000 Total Profit/Loss $ 90000 Total Profit/Loss $ 90000 Gross Profit Recognized in 2020 74100 Profit/(Loss) Recognized in 2021 $ 164100 2022 Costs to date (12/31/22) 1890000 Total Profit/Loss > $ 193300 Total Profit/Loss $ 193300 Profit/(Loss) Recognized in 2021 $ 164100 i Profit/(Loss) Recognized in 2020 74100 90000 Profit/(Loss) Recognized in 2022 v $ 103300 (b) Using the completed-contract 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 fields 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 Contract Price 1890000 Estimated Total Costs 1980000 Profit/(Loss) Recognized in 2021 $ 90000 2022 Contract Price $ 1890000 Costs Incurred 2083300 Total Profit /(Loss) on Contract 193300 Profit/(Loss) Recognized in 2021 90000 i Profit/(Loss) Recognized in 2022 $ 103300Step by Step Solution
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