Calculate the estimated gross profit

Assignment Help Accounting Basics
Reference no: EM133049965

Question - Carla Vista Construction Company has entered into a non-cancellable contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $620,000 and will take three years to construct. The complex will be billed to the purchasing company at $970,000. The following data pertain to the construction period.

 

2020

2021

2022

Costs to date

$279,000

$465,000

$630,000

Estimated costs to complete

341,000

155,000

0

Progress billings to date (non-refundable)

279,000

570,000

970,000

Cash collected to date

249,000

520,000

970,000

Required -

1) Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period.

2) Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period.

Reference no: EM133049965

Questions Cloud

Explain whether a company can act as a political actor : Corporate accountability refers to whether a corporation is answerable in some way for the consequences of its actions". According to the statement please expla
Current safe work practices for a piece of equipment : Research the current safe work practices for a piece of equipment, a workplace system or process in your service.
Journalize the entry to record the flow of costs : On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead
Determine the direct materials and conversion costs : The conversion cost for the period in the Filling Department is $306,520. Determine the direct materials and conversion costs
Calculate the estimated gross profit : Using the completed-contract method, calculate the estimated gross profit that would be recognized during each year of the construction period
Explain strategic window of opportunity : What is a strategic window of opportunity? What kind of firms are most likely to discover such a window? Please provide references
Explain grounds of success for developing iss : Question 1: Explain FIVE grounds of success for developing ISs for management decision making in the manufacturing industry
Positive and negative points for homes buildings : Please explain the Metal Containers the positive and negative points for homes buildings.
Computing the original amount of the loan : 1. Isaac borrowed $3,600 at 11.1% compounded quarterly 3.5 years ago. One year ago he made a payment of $1,800.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd