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On February 1, 2020, Oriole Contractors agreed to construct a building at a contract price of $3,130,000. The total estimated construction costs would be $1,555,000
On February 1, 2020, Oriole Contractors agreed to construct a building at a contract price of $3,130,000. The total estimated construction costs would be $1,555,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:
2020 | 2021 | 2022 | |||||||
Total costs incurred to date | $ | 544,250 | $ | 903,650 | $ | 2,380,000 | |||
Estimated costs to complete | 1,010,750 | 801,350 | -0- | ||||||
Customer billings to date | 1,100,000 | 1,555,000 | 3,130,000 | ||||||
Collections to date | 1,000,000 | 1,750,000 | 2,950,000 |
Calculate the gross profit / (loss) that should be recognized for 2020, 2021, and 2022 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
2020 | 2021 | 2022 | ||||
Gross profit / (loss) | $ | $ | $ |
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