Ayayai Construction Company has entered into a contract beginning January 1, 2020, to build a...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Ayayai Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $595,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $903,000. The following data pertain to the construction period. 2022 Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2020 $279,650 315,350 272,000 242,000 2021 $487,900 107,100 545,000 495,000 $606,000 -0- 903,000 903,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) $ Gross profit recognized in 2020 Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ LINK TO TEXT Question Attempts: 0 of 5 used
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
