Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help.Thanks a lot. On July 1, 2020, Bonita Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract
Please help.Thanks a lot.
On July 1, 2020, Bonita Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,880,000. On July 1, Bonita 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. (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 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).) 2021 Costs to date (12/31/21) $ Estimated Costs to Complete Estimated Total Costs Contract Price Total Profit/Loss $ $ 2022 Profit/(Loss) Recognized in 2022 $ Estimated Costs to Complete Contract Price $ $ (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).) 2022 Profit / (Loss) Recognized in 2022 $ Contract Price Profit / (Loss) Recognized in 2022 Total Profit / (Loss) on Contract Profit / (Loss) Recognized in 2022Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started