On July 1, 2020, Flounder Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,920,000. On July 1, Flounder estimated that it would take between 2 and 3 years to complete the building. On December 31, 2022, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2020, 2021, and 2022. At At At 12/31/20 12/31/21 12/31/22 Contract costs incurred to date $270,000 $1,272,600 $2,121,000 Estimated costs to complete the contract 1,230,000 747,400 -0- Billings to Gumbel 300,000 1,110,000 1,880,000 (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 o, please enter 0. Do not leave any field blank. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2020 | Costs to date (12/31/20) 270000 Estimated Costs to Complete 1230000 Estimated Total Costs 1500000 T Percent Complete 2011% Revenue Recognized 384000 T Costs Incurred 3000000 x 84000 Profit/ (Loss) Recognized in 2020 $ 2021 T Costs to date (12/31/21) 1272600 Estimated Costs to Complete 747400 Estimated Total Costs 2020000 Contract Price 1920000 Total Profit/Loss 100000 X Gross Profit Recognized in 2020 84000 T Gross Profit Recognized in 2020 x TL Profit/Loss Recognized in 2020 X 184000 Profit/Loss Recognized in 2020 184000 2022 Costs to date (12/31/22) 2121000 TEstimated Costs to Complete 0 2121000 Contract Price 1920000 Total Profit/Loss 201000 Profit/Loss Recognized in 2021 184000 x 84000 100000 101000 (b) Using the completed-contract 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. If an amount should be deducted then enter the amount using either a negative sign prececeding the number e.g. -45 or parenthesis e.g. (45).) 2021 Contract Price 1920000 Estimated Total Costs 2020000 Profit/ (Loss) Recognized in 2021 (100000) 2022 Contract Price 1920000 Costs Incurred (2121000) X Total Profit/ (Loss) on Contract (201000) (100000) Profit/ (Loss) Recognized in 2021 X Total Profit/(Loss) on Contract 101000 List Of Accounts Question 6 Accounts Receivable Advertising Expense Allowance for Sales Returns and Allowances Billings on Construction in Process Cash Commission Expense Construction in Process Construction Expenses Cost of Goods Sold Cost of Installment Sales Deferred Gross Profit Delivery Expense Discount on Notes Receivable Estimated Inventory Returns Freight-Out Gain on Repossession Income Summary Installment Accounts Receivable Installment Sales Revenue Inventory Inventory on Consignment Loss from Long-Term Contracts Loss on Repossession Materials, Cash, Payables No Entry Notes Receivable Operating Expenses Parts Expense Purchases Realized Gross Profit Rent Revenue Repossessed Merchandise Retained Earnings Returned Inventory Revenue from Consignment Sales Revenue from Franchise Fees Revenue from Long-Term Contracts Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Unearned Franchise Fees Unearned Sales Revenue Unearned Service Revenue Unearned Rent Revenue Unearned Warranty Revenue Warranty Expense Warranty Liability
