Question
I was able to figure out most of the problem but need help in how to get the answers with the (?). Below is the
I was able to figure out most of the problem but need help in how to get the answers with the (?). Below is the question and my partial answer.
On March 1, 2020, Oriole Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,420,000. The building was completed by October 31, 2022. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2020, 2021, and 2022 are given below:
2020 | 2021 | 2022 | ||||
Contract costs incurred during the year | $3,126,200 | $1,831,000 | $2,332,800 | |||
Estimated costs to complete the contract at 12/31 | 3,253,800 | 2,332,800 | 0 | |||
Billings to Fabrik during the year | 3,190,000 | 3,530,000 | 1,700,000 |
(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 0, please enter 0. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
2020 | |
Cost to date (12/31/20) | $ 3,126,200.00 |
Estimated Costs to Complete | $ 3,253,800.00 |
Estimated Total Costs | $ 6,380,000.00 |
Percent Completed | 49% |
Revenue Recognized | $ 4,125,800.00 |
Costs Incurred | $ 3,126,200.00 |
Profit/(Loss) Recognized in 2020 | $ 999,600.00 |
2021 | |
Cost to date (12/31/21) | $ 4,957,200.00 |
Estimated Costs to Complete | $ 2,332,800.00 |
Estimated Total Costs | $ 729,000.00 |
Percent Completed | ?% |
Revenue Recognized | ? |
Costs Incurred | $ 1,831,000.00 |
Profit/(Loss) Recognized in 2020 | ? |
2022 | |
Total Revenue Recognized | $ 8,420,000.00 |
Total Costs Incurred | $ 7,290,000.00 |
Total Profit on Contract | $ 1,130,000.00 |
Less: Profit Previously Recognized | ? |
Profit/(Loss) Recognized in 2022 | ? |
Thanks!
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