Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On February 1, 2020, Pharoah Contractors agreed to construct a building at a contract price of $2,840,000. The total estimated construction costs would be $2,155,000

On February 1, 2020, Pharoah Contractors agreed to construct a building at a contract price of $2,840,000. The total estimated construction costs would be $2,155,000 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 $ 765,025 $ 1,348,425 $ 2,350,000
Estimated costs to complete 1,389,975 956,575 -0-
Customer billings to date 1,100,000 2,155,000 2,840,000
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) $ $ $

some details, please

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Accounting questions