Question
Wieland Builders contracted to build a retail complex for $6,000,000. Construction began in 2021 and is expected to be completed in 2023. Data for
Wieland Builders contracted to build a retail complex for $6,000,000. Construction began in 2021 and is expected to be completed in 2023. Data for 2021 and 2022 are as follows: 2021 2022 Total costs incurred to date (life of the project) $ 1,800,000 $ 4,500,000 Estimated costs to complete 3,700,000 1,400,000 Progress billings during the year 1,400,000 Cash collected during the year 2,100,000 2,300,000 800,000 1. How much gross profit should be reported in 2021? 2. How much revenue should be reported in 2022? 3. How much gross profit should be reported in 2022? 4. Assume estimated costs to complete are $1,750,000 at the end of 2022. How much gross profit should be reported for the year ended December 31, 2022?
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1 Gross profit reported in 2021 2 Revenue reported in 2022 3 Gross profit loss reported in 2022 Work...Get Instant Access to Expert-Tailored Solutions
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