Problem 18-11

On July 1, 2017, Grouper Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Grouper estimated that it would take between 2 and 3 years to complete the building. On December 31, 2019, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2017, 2018, and 2019.

At 12/31/17 At 12/31/18 At 12/31/19 Contract costs incurred to date $266,400 $1,185,900 $2,109,700 Estimated costs to complete the contract 1,213,600 824,100 0 Billings to Gumbel 300,000 1,100,000 1,850,000

(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, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank.)

2017 Estimated Total Costs Estimated Costs to Complete Profit / (Loss) Recognized in 2017 Revenue Recognized Costs to date (12/31/17) Percent Complete $ Costs to date (12/31/17) Estimated Total Costs Percent Complete Estimated Costs to Complete Profit / (Loss) Recognized in 2017 Revenue Recognized Costs to date (12/31/17) Estimated Costs to Complete Estimated Total Costs Revenue Recognized Percent Complete Profit / (Loss) Recognized in 2017 $ Costs to date (12/31/17) Profit / (Loss) Recognized in 2017 Estimated Total Costs Estimated Costs to Complete Percent Complete Revenue Recognized % Costs Incurred Percent Complete Revenue Recognized Profit / (Loss) Recognized in 2017 Estimated Total Costs Estimated Costs to Complete $ Profit / (Loss) Recognized in 2017 Estimated Total Costs Estimated Costs to Complete Percent Complete Revenue Recognized Costs Incurred Revenue Recognized Costs Incurred Estimated Costs to Complete Profit / (Loss) Recognized in 2017 Estimated Total Costs Percent Complete $

2018 Profit/Loss Recognized in 2017 Estimated Costs to Complete Profit / (Loss) Recognized in 2018 Costs to date (12/31/18) Estimated Total Costs Contract Price Gross Profit Recognized in 2017 Total Profit/Loss $ Profit/Loss Recognized in 2017 Estimated Costs to Complete Estimated Total Costs Profit / (Loss) Recognized in 2018 Costs to date (12/31/18) Contract Price Total Profit/Loss Gross Profit Recognized in 2017 Profit/Loss Recognized in 2017 Profit / (Loss) Recognized in 2018 Total Profit/Loss Estimated Total Costs Contract Price Costs to date (12/31/18) Gross Profit Recognized in 2017 Estimated Costs to Complete Estimated Total Costs Profit/Loss Recognized in 2017 Costs to date (12/31/18) Profit / (Loss) Recognized in 2018 Estimated Costs to Complete Total Profit/Loss Contract Price Gross Profit Recognized in 2017 Gross Profit Recognized in 2017 Total Profit/Loss Profit / (Loss) Recognized in 2018 Estimated Costs to Complete Estimated Total Costs Contract Price Costs to date (12/31/18) Profit/Loss Recognized in 2017 $ Gross Profit Recognized in 2017 Profit/Loss Recognized in 2017 Costs to date (12/31/18) Profit / (Loss) Recognized in 2018 Estimated Costs to Complete Contract Price Estimated Total Costs Total Profit/Loss $ Add Less : Estimated Total Costs Total Profit/Loss Costs to date (12/31/18) Profit/Loss Recognized in 2017 Gross Profit Recognized in 2017 Profit / (Loss) Recognized in 2018 Estimated Costs to Complete Contract Price Contract Price Profit / (Loss) Recognized in 2018 Estimated Total Costs Total Profit/Loss Estimated Costs to Complete Costs to date (12/31/18) Gross Profit Recognized in 2017 Profit/Loss Recognized in 2017 $

2019 Total Profit/Loss Profit / (Loss) Recognized in 2019 Estimated Total Costs Costs to date (12/31/19) Contract Price Profit/Loss Recognized in 2018 Estimated Costs to Complete Gross Profit Recognized in 2017 Gross Profit Recognized in 2018 Profit/Loss Recognized in 2017 $ Profit / (Loss) Recognized in 2019 Gross Profit Recognized in 2018 Profit/Loss Recognized in 2018 Total Profit/Loss Costs to date (12/31/19) Estimated Costs to Complete Estimated Total Costs Contract Price Gross Profit Recognized in 2017 Profit/Loss Recognized in 2017 Total Profit/Loss Estimated Total Costs Gross Profit Recognized in 2017 Gross Profit Recognized in 2018 Contract Price Estimated Costs to Complete Profit/Loss Recognized in 2018 Costs to date (12/31/19) Profit / (Loss) Recognized in 2019 Profit/Loss Recognized in 2017 Profit/Loss Recognized in 2017 Estimated Costs to Complete Profit / (Loss) Recognized in 2019 Costs to date (12/31/19) Total Profit/Loss Estimated Total Costs Contract Price Profit/Loss Recognized in 2018 Gross Profit Recognized in 2017 Gross Profit Recognized in 2018 $ Estimated Total Costs Gross Profit Recognized in 2018 Estimated Costs to Complete Profit/Loss Recognized in 2017 Profit/Loss Recognized in 2018 Costs to date (12/31/19) Contract Price Profit / (Loss) Recognized in 2019 Total Profit/Loss Gross Profit Recognized in 2017 $ Add Less : Gross Profit Recognized in 2017 Gross Profit Recognized in 2018 Estimated Total Costs Profit/Loss Recognized in 2018 Costs to date (12/31/19) Profit / (Loss) Recognized in 2019 Contract Price Total Profit/Loss Profit/Loss Recognized in 2017 Estimated Costs to Complete $ Contract Price Estimated Costs to Complete Total Profit/Loss Estimated Total Costs Gross Profit Recognized in 2017 Gross Profit Recognized in 2018 Profit/Loss Recognized in 2017 Profit/Loss Recognized in 2018 Profit / (Loss) Recognized in 2019 Costs to date (12/31/19) Profit/Loss Recognized in 2017 Profit / (Loss) Recognized in 2019 Estimated Costs to Complete Costs to date (12/31/19) Total Profit/Loss Estimated Total Costs Gross Profit Recognized in 2018 Contract Price Profit/Loss Recognized in 2018 Gross Profit Recognized in 2017 $

(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, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank.)

2018 Estimated Total Costs Costs to date (12/31/18) Contract Price Estimated Costs to Complete Profit / (Loss) Recognized in 2018 $ Estimated Total Costs Estimated Costs to Complete Contract Price Profit / (Loss) Recognized in 2018 Costs to date (12/31/18) Contract Price Estimated Total Costs Profit / (Loss) Recognized in 2018 Estimated Costs to Complete Costs to date (12/31/18) Estimated Total Costs Estimated Costs to Complete Contract Price Profit / (Loss) Recognized in 2018 Costs to date (12/31/18) Costs to date (12/31/18) Profit / (Loss) Recognized in 2018 Estimated Costs to Complete Contract Price Estimated Total Costs $

2019 Total Profit / (Loss) on Contract Profit / (Loss) Recognized in 2018 Costs Incurred Contract Price Profit / (Loss) Recognized in 2019 $ Profit / (Loss) Recognized in 2018 Profit / (Loss) Recognized in 2019 Total Profit / (Loss) on Contract Costs Incurred Contract Price Contract Price Profit / (Loss) Recognized in 2018 Costs Incurred Total Profit / (Loss) on Contract Profit / (Loss) Recognized in 2019 Add Less : Profit / (Loss) Recognized in 2019 Costs Incurred Profit / (Loss) Recognized in 2018 Contract Price Total Profit / (Loss) on Contract Total Profit / (Loss) on Contract Contract Price Profit / (Loss) Recognized in 2018 Profit / (Loss) Recognized in 2019 Costs Incurred $