On July 1, 2017, Torvill Construction Company Inc. contracted tobuild an office building for...

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Accounting

On July 1, 2017, Torvill Construction Company Inc. contracted tobuild an office building for Gumbel Corp. for a total contractprice of $1,900,000. On July 1, Torvill estimated that it wouldtake between 2 and 3 years to complete the building. On December31, 2019, the building was deemed substantially completed.Following are accumulated contract costs incurred, estimated coststo complete the contract, and accumulated billings to Gumbel for2017, 2018, and 2019. At 12/31/17 At 12/31/18 At 12/31/19 Contractcosts incurred to date $??300,000 $1,200,000 $2,100,000 Estimatedcosts to complete the contract ?1,200,000 ???800,000 -0- Billingsto Gumbel ???300,000 ?1,100,000 ?1,850,000 Instructions (a) Usingthe percentage-of-completion method, prepare schedules to computethe profit or loss to be recognized as a result of this contractfor the years ended December 31, 2017, 2018, and 2019. (Ignoreincome taxes.) (b) Using the completed-contract method, prepareschedules to compute the profit or loss to be recognized as aresult of this contract for the years ended December 31, 2017,2018, and 2019. (Ignore income taxes.)

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In: AccountingOn July 1, 2017, Torvill Construction Company Inc. contracted tobuild an office building for Gumbel...On July 1, 2017, Torvill Construction Company Inc. contracted tobuild an office building for Gumbel Corp. for a total contractprice of $1,900,000. On July 1, Torvill estimated that it wouldtake between 2 and 3 years to complete the building. On December31, 2019, the building was deemed substantially completed.Following are accumulated contract costs incurred, estimated coststo complete the contract, and accumulated billings to Gumbel for2017, 2018, and 2019. At 12/31/17 At 12/31/18 At 12/31/19 Contractcosts incurred to date $??300,000 $1,200,000 $2,100,000 Estimatedcosts to complete the contract ?1,200,000 ???800,000 -0- Billingsto Gumbel ???300,000 ?1,100,000 ?1,850,000 Instructions (a) Usingthe percentage-of-completion method, prepare schedules to computethe profit or loss to be recognized as a result of this contractfor the years ended December 31, 2017, 2018, and 2019. (Ignoreincome taxes.) (b) Using the completed-contract method, prepareschedules to compute the profit or loss to be recognized as aresult of this contract for the years ended December 31, 2017,2018, and 2019. (Ignore income taxes.)