on July 1, 2020, Whispering Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On July 1, Whispering 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. 
Problem 18-11 Your answer is partially correct. Try again. At At On July 1, 2020, Whispering Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On July 1, Whispering 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 12/31/20 12/31/21 12/31/22 Contract costs incurred to date $327,800 $1,233,800 $2,092,700 Estimated costs to complete the contract 1,162,200 756,200 -0- Billings to Gumbel 310,000 1,100,000 1,840,000 (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 0, please enter O. 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).) (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) 327,800 Estimated Costs to Complete 1,162,200 X Estimated Total Costs $! $1,490,000 Percent Complete 2219 X Revenue Recognized 413600 Costs Incurred -327,800 Profit/ (Loss) Recognized in 2020 85,800 2021 Costs to date (12/31/21) 1,233,800 Estimated Costs to Complete 756,200 Estimated Total Costs $1,990,000 Contract Price 1,880,000 X Total Profit/Loss Gross Profit Recognized in 2020 85,800 Profit/ (Loss) Recognized in 2021 -154000 2022 Costs to date (12/31/22) 2,092,700 Estimated Costs to Complete 2,092,700 x X Estimated Total Costs x X (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 X X 2022 X X
