Brady Construction Company contracted to build an apartment complex for a price of $7,000,000. Construction began in 2024 andwas completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for theproject. All costs are stated in thousands of dollars.Costs Incurred during Year2025Estimated Costs to Complete(As of the End of the Year)202420252026$ 4,230 $ 1,500Situation1234562024$ 1,7001,700$ 2,7302026$ 1,5001,5003,2004,2303,2001,7002,7303,2004,2303,1007003,2001,4004,90097557003,2002,7004,9003,10067003,2003,8006,5553,500Required:Complete the following table.Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should beindicated by a minus sign.Gross Profit (Loss) RecognizedRevenue Recognized Over Time20252026Situation20241$ 2,006,745Revenue Recognized Upon Completion202620242025

% completion is based on Cost incurred upto date divided by Total estimated costsGross profit (Loss)…

Brady Construction Company contracted to build an apartment complex for a price of $7,000,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred during Year 2025 2026 Estimated Costs to Complete (As of the End of the Year) 2024 2025 $ 1,500 Situation 2024 1 $ 1,700 $ 2,730 $ 1,500 $ 4,230 2 1,700 1,500 3,200 4,230 3,200 3 1,700 2,730 3,200 4,230 3,100 4 700 3,200 1,400 4,900 975 5 700 3,200 2,700 4,900 3,100 6 700 3,200 3,800 6,555 3,500 2026 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.

Brady Construction Company contracted to build an apartment complex for a price of $7,000,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Costs Incurred during Year 2025 2026 Estimated Costs to Complete (As of the End of the Year) 2024 2025 $ 1,500 Situation 2024 1 $ 1,700 $ 2,730 $ 1,500 $ 4,230 2 1,700 1,500 3,200 4,230 3,200 3 1,700 2,730 3,200 4,230 3,100 4 700 3,200 1,400 4,900 975 5 700 3,200 2,700 4,900 3,100 6 700 3,200 3,800 6,555 3,500 2026 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. Construction began in 2018 and was completed in 2020. The following is a series of independent situations, numbered 1through 6, involving differing costs for the project. All costs are stated in thousands of dollars.Costs Incurred During YearEstimated Costs to Complete(As of the End of the Year)Situation 2018 2019 2020 2018 2019 20201 1,500 2,100 900 3,000 900 —2 1,500 900 2,400 3,000 2,400 —3 1,500 2,100 1,600 3,000 1,500 —4 500 3,000 1,000 3,500 875 —5 500 3,000 1,300 3,500 1,500 —6 500 3,000 1,800 4,600 1,700 —Required:Copy and complete the following table:Gross Profit (Loss) RecognizedOver Time Upon CompletionSituation 2018 2019 2020 2018 2019 2020123456
Brady Construction Company contracted to build an apartment complex for a price of $6,100,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Situation 1 2 2|3 3 2024 Costs Incurred during Year 2026 $1,230 2,840 2,480 1,220 2,070 2,900 4 5 6 $ 1,610 1,610 1,610 610 610 610 2025 $ 2,460 1,230 2,460 3,110 3,110 3,110 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. 2024 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,690 3,690 3,690 4,270 4,270 5,655 $ 1,230 2,840 2,380 930 Revenue Recognized Over Time 2025…
Brady Construction Company contracted to build an apartment complex for a price of $5,100,000. Construction began in 2021 and was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. situation 2021 1 2 3 4 5 6 Situation 1 2 3 Costs Incurred During Year 2022 1,510 2,160 1,510 1,510. $10 510 3,010 1,370 510 3,010 1,900 4,700 4 5 6 Estimated Costs to Complete (As of the End of the Year) 2022 2023 2021 930 3,090 930 2,440 3,090 2,160 1,680 3,090 3,010 1,020 930 2,440 1,580 880 Required: Complete the following table. (Do not round intermediate calculations. Enter answers in dollars. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.) 3,570 3,570 1,580 1,790 2023 11111 Gross Profit (Loss) Recognized Revenue Recognized Over Time 2022 2023 2021 Revenue Recognized Upon Completion 2021 2022 2023
Brady Construction Company contracted to build an apartment complex for a price of $6,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 4 5 6 Costs Incurred during Year 2024 2025 2026 $ 2,550 $ 1,320 $ 1,640 1,640 1,640 1,320 2,960 2,550 2,720 Situation 1 2 3 4 5 6 640 640 640 3,140 3,140 3,140 1,280 2,280 3,200 2024 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 1,320 $ 3,870 3,870 3,870 4,480 4,480 5,955 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. 2,960 2,620 945 2,620 2,960 Revenue Recognized Over Time…
Sandhill Builders contracted to build a high-rise for $29,000,000. Construction began in 2024 and is expected to be completed in 2026. Data for 2024 and 2025 are: Costs incurred to date Estimated costs to complete (a) 2024 $3,700,000 14,800,000 Sandhill uses the percentage-of-completion method. Gross profit $ 2025 $10,920,000 10,080,000 How much gross profit should be reported for 2024?
Brady Construction Company contracted to build an apartment complex for a price of $5,400,000. Construction began in 2024 and was completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Situation 1 2 3 Costs Incurred during Year 2024 2026 1,540 1,540 $ 1,540 Situation 1 2 3 4 5 6 540 540 540 2025 $ 2,250 1,020 2,250 3,040 3,040 3,040 $1,020 2,560 1,920 1,080 1,580 2,200 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 3,270 $ 1,020 3,270 3,270 3,780 3,780 5,000 2,560 1,820 895 1,820 2,060 Required: Complete the following table. Note: Do not round intermediate calculations. Enter your answers in whole dollars and not in thousands of dollars (i.e.. $400 thousand should be entered as $400,000). Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. Gross Profit (Loss) Recognized Revenue…
- Oriole Construction Company began work on a $407,000 construction contract in 2025. During 2025, Oriole incurred costs of $272,000, billed its customer for $217,000, and collected $177,500. At December 31, 2025, the estimated additional costs to complete the project total $157,020. Prepare Oriole's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Do not round Intermediate calculations.) No. Account Titles and Explanation (a) (b) eTextbook and Medial List of Accounts Debit Credit
Mikell Builders contracted to build a high-rise for $10,000,000. Construction began in 2020 and is expected to be completed in 2022. Data for 2020 and 2021 are: 2020 2021 2022 Costs to date 4,500,000 7,200,000 8,600,000 Estimated costs to complete 3,000,000 1,200,000 0 Mikell uses the percentage-of-completion method. Required: Compute the amount of gross profit (loss) that Mikell must report for 2020. Compute the amount of gross profit (loss) that Mikell must report for 2021. Compute the amount of gross profit (loss) that Mikell must report for 2022. Assume instead that Mikell uses the completed contract method. Compute the amount of gross profit (loss) that Mikell must report for each the three years - 2020, 2021, and 2022.
Sheridan Construction Co. contracted to build a bridge for $10,500,000. Construction began in 2024 and was completed in 2025. Data relating to the construction are: Costs incurred during the year Estimated costs to complete (a) 2024 $4,095,000 Revenue $ 2,730,000 Sheridan uses the percentage-of-completion method. How much revenue should be reported for 2024? 2025 $2,780,000
On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which The is estimated cost P31,200,000. company recognizes construction to Data on this project for 2022-2024 follow: Est'd Costs revenue over time. Contract Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 13,156,000 2022 5,460,000 9,984,000 2023 2024 15,756,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. contract was delayed for 8 weeks In 2024, the What is the gross profit for 2024? 1,164,000 1,466,400 1,724,000 1,824,000 А. с. в. D.
On January 1, 2021. Robredo Co. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year 12/31/2021 12/31/2022 12/31/2023 P 3740000 Costs incurred during the year Realized gross profit/(loss) during the year Percentage of completion as of the end of the year ? ? P750,000 (P250,000) (P800,000) 50% 37.5% ? What is the balance of Construction in Progress on December 31, 2023?
BU Contractors received a contract to construct an office building for $19,000,000. Construction was begun in 2021 and completed in 2023. Cost and other data are presented below: Cost Incurred during the year Estimated total costs to complete 2021 7,650,000 9,350,000 2022 3,725,000 6,125,000 2023 6,625,000 6,000,000 7,000,000 6,000,000 5,500,000 7,100,000 6,400,000 Billings during the year Cash collections during the year BU recognizes revenue over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Compute the Gross Profit on the job for each year. Compute the ending Accounts Receivable for each year.