Problem $6-12($Algo$)$ Long$-$term contract; revenue recognized over time vs$.$ upon project completion; loss projected on entire project $[$LO$6-9]$

Curtiss Construction Company, Incorporated, entered into a fixed$-$price contract with Axelrod Associates on July $1,2024,$ to construct a four$-$story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $$4,840,000.$ The building was completed on December $31,2026.$ Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows:

At $12-31-2024$ At $12-31-2025$ At $12-31-2026$

Percentage of completion $10\%60\%100\%$

Costs incurred to date $ $373,000$ $ $3,108,000$ $ $5,244,000$

Estimated costs to complete $3,357,0002,072,0000$

Billings to Axelrod, to date $734,0002,450,0004,840,000$

Required:

Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Curtiss concludes that the contract does not qualify for revenue recognition over time.

Assuming Curtiss recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years.

Assuming Curtiss recognizes revenue over time according to percentage of completion, compute the amount to be shown in the balance sheet at the end of $2024$ and $2025$ as either cost in excess of billings or billings in excess of costs. Exercise $6-19($Algo$)$ Long$-$term contract; revenue recognition over time and at a point in time $[$LO$6-9]$

Assume Avaya contracted to provide a customer with Internet infrastructure for $$2,150,000.$ The project began in $2024$ and was completed in $2025.$ Data relating to the contract are summarized below:

$20242025$

Costs incurred during the year $ $312,000$ $ $1,635,000$

Estimated costs to complete as of $12/311,248,0000$

Billings during the year $395,0001,650,000$

Cash collections during the year $280,0001,765,000$

Required:

Compute the amount of revenue and gross profit or loss to be recognized in $2024$ and $2025,$ assuming Avaya recognizes revenue over time according to percentage of completion.

Compute the amount of revenue and gross profit or loss to be recognized in $2024$ and $2025,$ assuming this project does not qualify for revenue recognition over time.

Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of $2024,$ assuming Avaya recognizes revenue over time according to percentage of completion.

Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of $2024,$ assuming this project does not qualify for revenue recognition over time. Can you please show me step by step ASP. Thanks