On July 1, 2020, Pronghorn Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On July 1, Pronghorn 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 Contract costs incurred to date Estimated costs to complete the contract Billings to Gumbel At 12/31/20 $288,800 1,231,200 290,000 12/31/21 $1,227,600 752,400 1,090,000 12/31/22 $2,078,500 -0- 1,820,000 (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 T Costs to date (12/31/20) 288,800 TEstimated Costs to Complete 1,231,200 T Estimated Total Costs 1,520,000 T Percent Complete 191% TRevenue Recognized 357,200 Costs Incurred 288,800 TGross Profit / (Loss) Recognized in 2020 68,400 2021 TCosts to date (12/31/21) 1,227,600 TEstimated Costs to Complete 752,400 T Estimated Total Costs 1,980,000 TContract Price Total Profit/Loss TT Gross Profit Recognized in 2020 808,400 TT Costs to date (12/31/21) 1,227,600 TProfit / (Loss) Recognized in 2021 399,200 2022 PX xu (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 o, 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 2022 On July 1, 2020, Pronghorn Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On July 1, Pronghorn 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 Contract costs incurred to date Estimated costs to complete the contract Billings to Gumbel At 12/31/20 $288,800 1,231,200 290,000 12/31/21 $1,227,600 752,400 1,090,000 12/31/22 $2,078,500 -0- 1,820,000 (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 T Costs to date (12/31/20) 288,800 TEstimated Costs to Complete 1,231,200 T Estimated Total Costs 1,520,000 T Percent Complete 191% TRevenue Recognized 357,200 Costs Incurred 288,800 TGross Profit / (Loss) Recognized in 2020 68,400 2021 TCosts to date (12/31/21) 1,227,600 TEstimated Costs to Complete 752,400 T Estimated Total Costs 1,980,000 TContract Price Total Profit/Loss TT Gross Profit Recognized in 2020 808,400 TT Costs to date (12/31/21) 1,227,600 TProfit / (Loss) Recognized in 2021 399,200 2022 PX xu (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 o, 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 2022
