Waterway Construction Company has entered into a contract beginning January 1, 2020, to build a parking...

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Accounting

Waterway Construction Company has entered into a contractbeginning January 1, 2020, to build a parking complex. It has beenestimated that the complex will cost $600,000 and will take 3 yearsto construct. The complex will be billed to the purchasing companyat $901,000. The following data pertain to the constructionperiod.
2020
2021
2022
Costs to date $246,000 $432,000 $612,000
Estimated costs to complete 354,000 168,000 –0–
Progress billings to date 270,000 546,000 901,000
Cash collected to date 240,000 496,000 901,000

(a) Using the percentage-of-completion method,compute the estimated gross profit that would be recognized duringeach year of the construction period. (If answer is 0,please enter 0. Do not leave any fieldsblank.)
Gross profit recognized in 2020
$
Gross profit recognized in 2021
$
Gross profit recognized in 2022
$

(b) Using the completed-contract method, computethe estimated gross profit that would be recognized during eachyear of the construction period. (If answer is 0,please enter 0. Do not leave any fieldsblank.)
Gross profit recognized in 2020
$
Gross profit recognized in 2021
$
Gross profit recognized in 2022
$

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Requirement a Gross profit recognized in 2020 125050 Gross profit recognized in 2021 94550 Gross profit recognized in 2022 73400 Working Working 2020 2021 2022 A See Answer

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	2020	2021	2022
Costs to date	$246,000	$432,000	$612,000
Estimated costs to complete	354,000	168,000	–0–
Progress billings to date	270,000	546,000	901,000
Cash collected to date	240,000	496,000	901,000

Gross profit recognized in 2020		$
Gross profit recognized in 2021		$
Gross profit recognized in 2022		$