JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,365,000. JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete $1,660,000 621,000 0 Cost incurred 2023 $ 272,000 1,710,000 2024 2025 560,000 In 2025, JRE2 would report gross profit (loss) of: Multiple Choice $(177,000). $84,000 $61,000. $30 323

JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,365,000. JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete $1,660,000 621,000 0 Cost incurred 2023 $ 272,000 1,710,000 2024 2025 560,000 In 2025, JRE2 would report gross profit (loss) of: Multiple Choice $(177,000). $84,000 $61,000. $30 323

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 18RE

See similar textbooks

Similar questions

JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 250,000 $ 1,550,000 2024 1,600,000 500,000 2025 450,000 0 In 2025, JRE2 would report gross profit (loss) of:
JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,275,000. JRE 2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 260,000 $ 1,600,000 2024 1,650,000 550,000 2025 500,000 0 In 2024, JRE2 would report gross profit (loss) of: Multiple Choice $(320,000). $(235,000). $(185,000). So.
contract. Information on the construction is shown below: in recognizing revenue and profit from the contract. In 20xl, Taste Construction Co. started work on a P5M fixed price Taste uses the percentage of completion method (based on costs) 20x1 20x2 1,425,000 4,040,000 3,325,000 1,010,000 20x3 Casts incurred to date 5,080,000 How much is the loss provision recognized in 20x2? a. 25,000 b. 15,000 c. 10,000 d. 5,000
Blue construction Co. has two projects for which it reported, as of December 31, 2012, the following information: Project a Project b Contract price P4, 800, 000 P860,000 2011: cost incurred 3, 400, 000 Percentage completed 75% 2012: cost incurred P1, 250, 000 P140, 000 Percentage completed 25% 15%Using the percentage of completion method of revenue recognition, gross profit on project A to be presented in 2011 would be:P 200, 000 P300, 000 P400, 000 P900, 00How much is the construction in progress on December 31,2011 from project A?200,0003,600,0003,400,0004,800,000
Athena Co. started work on an P8M fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 20x3 Costs incurred per year 2,850,000 3,670,000 1,600,000 Estimated costs to complete 4,275,000 1,630,000 - Requirement: Compute for the amounts recognized in profit or loss in 20x1, 20x2, 20x3, respectively.
Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, the following information: In thousand pesos: Project A Project B Contract Price P 4,800 860 20x4: Costs incurred P 3,400 Percent completed 75% 20x5: Costs incurred P 1,250 140 Percent Completed 25% 15% Using the percentage-of-completion (over time) method of revenue recognition, gross profit on Project A to be recognized in 20x4 would be: a. P 200,000 ] b. P 300,000
Blue Construction Corp. began operations in 2023. Construction activity for 2023 is shown below. Blue uses the completed-contract method. Contract 1 2 3 Contract Price $1288000 1443400 1321000 Billings Through 12/31/23 $1270000 601000 787000 Collections Through 12/31/23 $1045000 402000 722000 Costs to 12/31/23 $880000 329000 current liability contract asset/liability, $94000 current asset contract asset/liability, $49000 current asset contract asset/liability, $143000 O accounts receivable, $787000 930000 Estimated Costs to Complete $758000 485000 Which of the following should be shown on the statement of financial position at December 31, 2023 related to Contract 3?
Crane Corporation uses the completed-contract method. At the end of the first year of a $9023000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2021000 O $991000 O $247750 O $275000 O $0 6011000 1811000 1536000 In the first year, Crane should recognize gross profit of Crane Corporation uses the co information is available: Costs to date: Estimated costs to complete Progress billings during the y Cash collected during the yea In the first voor Crano should r Snipping Tool Screenshot copied t Select here to mark
UN LOUIS ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?
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
Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, thefollowing information: In thousand: Project A Project B Contract price 4,800 860 20x4: Costs incurred 3,400 Percent completed 75% 20x5: Costs incurred 1,250 140 Percent completed 25% 15% Using the percentage-of-completion (overtime) method of revenue recognition, gross profit on Project Ato be recognized in 20x4 would be:
Yellow. Arrow Construction. Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Yellow Arrow entered into a fixed-price contract to construction an office bundling for P12,000,000. Information relating to the contract is as follows: At December 31 2018 2019 15% 45% Percentage of completion Estimated total cost at completion Gross profit recognized (cumulative) P9,600,000 P9,000,000 600,000 1,440,000 How much is the contract costs incurred during 2019?