Can it be done as a chart similar to this one so i can understand it better? *Pr
ID: 2408144 • Letter: C
Question
Can it be done as a chart similar to this one so i can understand it better?
*Problem 18-11 On July 1, 2017, Sweet Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Sweet estimated that it would take between 2 and 3 years to complete the building. On December 31, 2019, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2017, 2018, and 2019. At 12/31/17 12/31/18 12/31/19 At At Contract costs incurred to date Estimated costs to complete the contract Billings to Gumbel $312,900 $1,148,400 $2,076,000 ,177,100 831,600 300,000 1,090,000 1,850,000 (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any field blank.) 2017 2018Explanation / Answer
Percentage completion method 2017 2018 2019 Cost incurred in till previous year 0 312900 1148400 ADD Cost incurred during the year 312900 835500 927600 Total cost incurred till date 312900 1148400 2076000 ADD Estimated cost to be incurred 1177100 831600 0 Total estimated cost to be incurred 1490000 1980000 2076000 Percentage of completion (A) 21% 58.00% 100% (cost incurred till date /total estimated cost ) Total revenue (B) 1890000 1890000 1890000 Total revenue recognized (A *B) 396900 1096200 1890000 Less Revenue recognized in previous year 0 396900 1096200 revenue recognized in current year 396900 699300 793800 2017 2018 2019 Revenue 396900 699300 793800 Less Cost incurred 312900 835500 927600 Gross profit 84000 -136200 -133800 Completed contracts 2017 2018 2019 Revenue 0 0 1890000 Less Cost incurred 0 0 2076000 Gross profit 0 0 -186000