| Problem 18-10 On March 1, 2020, Pearl Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,360,000. The building was completed by October 31, 2022. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2020, 2021, and 2022 are given below: | | | 2020 | | 2021 | | 2022 | | Contract costs incurred during the year | | $2,615,800 | | $2,633,000 | | $2,041,200 | | Estimated costs to complete the contract at 12/31 | | 3,764,200 | | 2,041,200 | | 0 | | Billings to Fabrik during the year | | 3,230,000 | | 3,500,000 | | 1,630,000 | (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 0. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) | 2020 | | Profit / (Loss) Recognized in 2020Costs IncurredPercent CompleteRevenue RecognizedEstimated Total CostsCosts to date (12/31/20)Estimated Costs to Complete | | $ | | | Profit / (Loss) Recognized in 2020Percent CompleteEstimated Total CostsRevenue RecognizedCosts to date (12/31/20)Estimated Costs to CompleteCosts Incurred | | | | | Profit / (Loss) Recognized in 2020 Percent Complete Revenue Recognized Estimated Costs to Complete Estimated Total Costs Costs Incurred Costs to date (12/31/20) | | $ | | | | | | | | Profit / (Loss) Recognized in 2020Costs to date (12/31/20)Estimated Total CostsCosts IncurredEstimated Costs to CompletePercent CompleteRevenue Recognized | | | % | | | | | | | Costs to date (12/31/20)Estimated Costs to CompleteEstimated Total CostsPercent CompleteRevenue RecognizedCosts IncurredProfit / (Loss) Recognized in 2020 | | $ | | | Percent CompleteCosts to date (12/31/20)Costs IncurredProfit / (Loss) Recognized in 2020Estimated Costs to CompleteRevenue RecognizedEstimated Total Costs | | | | | Percent CompleteEstimated Costs to CompleteRevenue RecognizedCosts IncurredProfit / (Loss) Recognized in 2020Costs to date (12/31/20)Estimated Total Costs | | $ | | | 2021 | | Estimated Total CostsPercent CompleteRevenue Recognized in 2021Profit / (Loss) Recognized in 2020Costs Incurred in 2021Costs to date (12/31/21)Estimated Costs to Complete | | $ | | | Estimated Costs to CompleteEstimated Total CostsRevenue Recognized in 2021Costs to date (12/31/21)Costs Incurred in 2021Profit / (Loss) Recognized in 2020Percent Complete | | | | | Estimated Costs to Complete Costs to date (12/31/21) Estimated Total Costs Revenue Recognized in 2021 Costs Incurred in 2021 Percent Complete Profit / (Loss) Recognized in 2020 | | $ | | | | | | | | Costs to date (12/31/21)Estimated Total CostsEstimated Costs to CompletePercent CompleteRevenue Recognized in 2021Costs Incurred in 2021Profit / (Loss) Recognized in 2020 | | | % | | | | | | | Revenue Recognized in 2021Percent CompleteEstimated Total CostsCosts Incurred in 2021Estimated Costs to CompleteProfit / (Loss) Recognized in 2020Costs to date (12/31/21) | | $ | | | Profit / (Loss) Recognized in 2020Costs Incurred in 2021Estimated Costs to CompleteCosts to date (12/31/21)Estimated Total CostsPercent CompleteRevenue Recognized in 2021 | | | | | Costs Incurred in 2021 Estimated Total Costs Revenue Recognized Costs to date (12/31/21) Percent Complete Profit / (Loss) Recognized in 2021 Estimated Costs to Complete | | $ | | | 2022 | | Total Profit on ContractTotal Costs IncurredProfit Previously RecognizedProfit / (Loss) Recognized in 2022Total Revenue Recognized | | $ | | Total Revenue RecognizedTotal Costs IncurredTotal Profit on ContractProfit Previously RecognizedProfit / (Loss) Recognized in 2022 | | | | Total Costs IncurredProfit Previously RecognizedTotal Revenue RecognizedTotal Profit on ContractProfit / (Loss) Recognized in 2022 | | | | AddLess : Total Profit on ContractTotal Revenue RecognizedProfit Previously RecognizedProfit / (Loss) Recognized in 2022Total Costs Incurred | | | | Total Revenue RecognizedTotal Profit on ContractTotal Costs IncurredProfit / (Loss) Recognized in 2022Profit Previously Recognized | | $ | (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. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) | Click if you would like to Show Work for this question: | Open Show Work | | | | |
