Hardev Brady Construction Company contracted to build an apartment complex for a price of $5,500,000. Construction began in 2024 andwas completed in 2026. The following is a series of independent situations, numbered 1 through 6, involving differing costs for theproject. All costs are stated in thousands of dollars.Situation123456Costs Incurred during Year20242026$ 1,0502,6002,0001,100Situation123456$ 1,5501,5501,5505505505502025$ 2,2801,0502,2803,0503,0503,05020241,6502,300Estimated Costs to Complete(As of the End of the Year)202420262025$ 1,0502,6001,9009001,9002,150$ 3,3303,3303,330Required: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.3,8503,8505,100Gross Profit (Loss) RecognizedRevenue Recognized Over Time20262025Revenue Recognized Upon Completion202420262025

The gross profit from the contract is the gross profit which has to be computed based upon the…

Answered: Complete the following table. Note: Do…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
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 $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 Estimated Costs to Complete (As of the End of the Year) 2024 2025 2026 $ 4,230 $ 1,500 Situation 123456 2024 $ 1,700 1,700 $ 2,730 2026 $ 1,500 1,500 3,200 4,230 3,200 1,700 2,730 3,200 4,230 3,100 700 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 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 Recognized Over…
Brady Construction Company contracted to build an apartment complex for a price of $5,000,000. 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 Estimated Costs to Complete (As of the End of the Year) 2024 $ 3,000 Situation 2024 1 $ 1,500 2025 $ 2,100 2026 2025 $ 900 $ 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 7.Bee 4,600 1,700 Required: 2026 Complete the following table. Note: Enter your answers in whole dollars and not in thousands of dollars (i.e., $400 thousand should be entered as $400,000). Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign. Situation 2024 1 2 3 4 5 6 Gross Profit (Loss) Recognized…
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…
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
Sandhill Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.8 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses $ Gross Profit $ 2022 2022 $637,000 1,489,000 $844,000 Calculate the gross profit to be recognized each year using the completed-contract method. 2023 $ $ 713,000 2024 $715,900 2023 0 $ $ 2024 SUPPORT
Oriole Construction Company began work on a $420,000 construction contract in 2025. During 2025, Oriole incurred costs of $264, 500, billed its customber for $207,000, and collected $179,500. December 31, 2025, the estimated additional costs to complete the project total $159, 650. 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.
Blossom Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.3 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses Gross Profit Calculate the gross profit to be recognized each year using the completed-contract method. $ 2022 $661,000 $822,000 1,519,000 705,000 2023 2022 2024 $685,900 0 2023 $ 2024
Arizona Desert Homes (ADH) constructed a new subdivision during 2023 and 2024 under contract with Cactus Development Company. Relevant data are summarized below: Contract amount Cost: Gross profit: Contract billings: 2023 2024 2023 2024 2023 2024 $ 3,405,000 1,290,000 690,000 935,000 490,000 1,702,500 1,702,500 ADH recognizes revenue upon completion of the contract. What is the journal entry in 2024 to record revenue?
Hayes Construction Corporation contracted to construct a building for $7,500,000. Construction began in 2022 and was completed in 2023. Data relating to the contract are summarized below: Year ended December 31, 2022 2023 Costs incurred $3,000,000 $2,250,000 Estimated costs to complete 2,000,000 0 Hayes uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2022, and 2023, respectively, Hayes should report gross profit of a. $1,350,000 and $900,000. b. $4,500,000 and $3,000,000. c. $1,500,000 and $750,000. d. $0 and $2,250,000.
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

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