Calculate estimated gross profit that would be recognized

Assignment Help Accounting Basics
Reference no: EM133068085

Question - Wildhorse Construction Company has entered into a non-cancellable contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $615,000 and will take three years to construct. The complex will be billed to the purchasing company at $1,005,000. The following data pertain to the construction period.

 

2020

2021

2022

Costs to date

$276,750

$461,250

$625,000

Estimated costs to complete

338,250

153,750

0

Progress billings to date (non-refundable)

276,750

565,000

1,005,000

Cash collected to date

246,750

515,000

1,005,000

Required -

1. Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period.

2. Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period.

Reference no: EM133068085

Questions Cloud

What recommendations can you make regarding the following : Furthermore, she makes a 401(k) contribution of $300 per month and $100 to her IRA montly. What recommendations can you make regarding the following
How boston books could help : a) What are some specific ideas for how Boston Books could help with the book drive? Provide two to three ideas.
What should janelle asset allocation be : What should Janelle's asset allocation be? Explain your answer.
Determining the payback period : Wilson's Market is considering two mutually exclusive projects. The required rate of return is 8% for Project A and 10% for Project B. Project A has an initial
Calculate estimated gross profit that would be recognized : Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period
Build a training center : What are some of the risks of a corporation using operating leverage to build a training center instead of paying to send its employees to outside training cour
Confidence interval for the true average : The weight (in grams) of the sugar contained in the packages of a certain brand is a random variable normally distributed. In order to analyze the average sugar
What is the required rate of return for twynam corp : Twynam Corp. has a beta of 1.3. The market risk premium is 8% and the risk-free rate is 3%. What is the required rate of return for Twynam Corp?
Calculate the new prices of bonds : Calculate the new prices of both bonds to illustrate your answer.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Federal express is the worlds leading express

federal express is the worlds leading express distributioncompany . in addition to the worlds largest fleet of all

  Determine what is the average accounts receivable

What is the average Inventory? What is the average Accounts Receivable? Round your answers to the nearest integer. Enter your answer in thousands of dollars.

  What bad debt expense would ABC report

Credit sales for the year were $2,260,000, and cash collections from credit customers totaled $1,900,000. What bad debt expense would ABC report

  Calculate the gross margin percentage

The accountant for Bert's Office Supplies has had to take extended sick leave. Calculate the gross margin percentage

  Create journal entries to record the foregoing transactions

Create statement of stockholders' equity. Net income for the year is $341,000. Create journal entries to record the foregoing transactions.

  How the inventory process relates to the revenue

Describe how the inventory process relates to the revenue and purchasing processes

  What is the payback of the given project

Suppose a project has a $2,000,000 net investment and net cash flows (NCFs) of $700,000 annually for 7 years. What is the payback of this project?

  What are the central selling points

What are the central selling points? Does the letter use rational, emotional, or a combination of appeals? Explain

  Determine the cash from different activities

Question - XYZ Company had the following transactions during the year: Net Loss ($18,000). Determine the cash from different activities and total change

  What sales level must be achieved to have

The Sunmoon Ltd is the distributor for a foreign product. What sales level must be achieved to have the after tax target profit Tk.3,00,000.00

  Take-home pay with the retirement contribution

What would be his weekly take-home pay with the retirement contribution deducted (married, 2 allowances, wage-bracket method, and a 2.3% state income tax on total wages)?

  Sarp and townson had capital balances of 60000 and 90000

sharp and townson had capital balances of 60000 and 90000 respectively at the beginning of the current fiscal year. the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd