Wildhorse Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2025 $267,300 326,700 $463,320 130,680 268,000 547,000 238,000 497,000 Gross profit recognized in 2025 $ Gross profit recognized in 2026 Gross profit recognized in 2027 2026 $ Using the cost-recovery method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0. please enter O. Do not leave any fields blank.) $ 2027 $606,000 -0- 896,000 896,000

Wildhorse Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2025 $267,300 326,700 $463,320 130,680 268,000 547,000 238,000 497,000 Gross profit recognized in 2025 $ Gross profit recognized in 2026 Gross profit recognized in 2027 2026 $ Using the cost-recovery method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0. please enter O. Do not leave any fields blank.) $ 2027 $606,000 -0- 896,000 896,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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