L23 7 5 6 8 9 10 11 12 13 5 14 15 16 17 18 19 20 21 22 23 24 25 26 27 B C D ACTG 382 Excel Homework Assignment #1 Winter 2024 A a. Total contract price Instructions b. Company Background Information: On July 1, 2025, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2027, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2025, 2026, and 2027. Contract costs incurred to date Estimated costs to complete the contract Progress Billings to Gumbel during year This assignment is graded on the following: 1. Schedules are completed in totality for each year, with a profit/loss amount calculated for each year (6 points). 2. Appropriate use of Excel - Use of cell references for amounts if given in the problem data and use of formulas for all calculations (4 points). E $ $ F 2,200,000 G At 12/31/25 At 12/31/26 At 12/31/27 300,000 $1,200,000 $ 2,100,000 1,200,000 300,000 800,000 1,100,000 H 800,000 | Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2025, 2026, and 2027. (Ignore income taxes.) Using the cost recovery method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2025, 2026, and 2027. (Ignore income taxes.) J K Solution: a. L b M N Year O Percent Estimated Total Complete To Year Costs Date 2025 $1,500,000 2026 $ 2,000,000 2027 $ P Revenue Recognized To Date Costs Incurred To Date 20% $ 440,000 $300,000 $ 60% $ 1,320,000 $1,200,000 $ 100% $ 2,200,000 $2,100,000 $ Q Revenue Costs Incurred Costs Incurred Recognized In In Current Year To Date Current Year 2025 $ 300,000 300,000 300,000 2026 $ 900,000 1,200,000 900,000 2027 $ 900,000 $2,100,000 $ 1,000,000 R Total Contract Profit/Loss Revenue Recognized To Date $300,000 1,200,000 2,200,000 $ Gross Profit/Loss for the year $ 140,000 200,000 $ (20,000) (100,000) $ (20,000) S Gross Profit Gross Profit To Recognized in Date Current Year 100,000 $ 100,000 T