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On February 1, 2023, Peter Yan Contractors agreed to construct a building at a contract price of $5,840,000. Ivanhoe estimated total construction costs would
On February 1, 2023, Peter Yan Contractors agreed to construct a building at a contract price of $5,840,000. Ivanhoe estimated total construction costs would be $4,032,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: 2023 2024 2025 Total costs incurred to date $1,512,000 $2,664,000 $4,620,000 Estimated costs to complete 2,520,000 1,776,000 -0- Customer billings to date 2,240,000 4,032,000 5,640,000 Collections to date 2,040,000 3,540,000 5,540,000 Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and cost-recovery accounting, show the gross profit that should be reported for 2023, 2024, and 2025. Percentage-of-Completion Gross Profit Cost-Recovery Gross Profit 2023 $ 2024 $ 2025 tA 2023 SA 2024 $ 2025 $ H
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