For the year ended cooper would recognize gross

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69. For the year ended December 31, 2010, Cooper would recognize gross profit on the building of: a. $316,250 b. $345,000 c. $405,000 d. $0 70. At December 31, 2010 Cooper would report Construction in Process in the amount of: 71. Hayes Construction Corporation contracted to construct a building for $1,500,000. Construction began in 2010 and was completed in 2011. Data relating to the contract are summarized below: Year ended December 31, 2010 2011 Costs incurred $600,000 $450,000 Estimated costs to complete 400,000 Hayes uses the percentage-of-completion method as the basis for income recognition. For the years ended December 31, 2010, and 2011, respectively, Hayes should report gross profit of 72. Monroe Construction Company uses the percentage-of-completion method of accounting. In 2010, Monroe began work on a contract it had received which provided for a contract price of $15,000,000. Other details follow: 2010 Costs incurred during the year $7,200,000 Estimated costs to complete as of December 31 4,800,000 Billings during the year 6,600,000 Collections during the year 3,900,000 What should be the gross profit recognized in 2010? 18 - 16
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Revenue Recognition Use the following information for questions 73 and 74. In 2010, Fargo Corporation began construction work under a three-year contract. The contract price is $2,400,000. Fargo uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2010, follow: Balance Sheet Accounts receivable—construction contract billings $100,000 Construction in progress $300,000 Less contract billings 240,000 Costs and recognized profit in excess of billings 60,000 Income Statement Income (before tax) on the contract recognized in 2010 $60,000 73. How much cash was collected in 2010 on this contract? a. $100,000 b. $140,000 c. $20,000 d. $240,000 74. What was the initial estimated total income before tax on this contract? 75. Adler Construction Co. uses the percentage-of-completion method. In 2010, Adler began work on a contract for $3,300,000 and it was completed in 2011. Data on the costs are: Year Ended December 31 2010 2011 Costs incurred $1,170,000 $840,000 Estimated costs to complete 780,000 For the years 2010 and 2011, Adler should recognize gross profit of 2010 2011 Use the following information for questions 76 and 77. Gomez, Inc. began work in 2010 on contract #3814, which provided for a contract price of $7,200,000. Other details follow: 2010 2011 Costs incurred during the year $1,200,000 $3,675,000 Estimated costs to complete, as of December 31 3,600,000 0 Billings during the year 1,350,000 5,400,000 Collections during the year 900,000 5,850,000 18 - 17
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Test Bank for Intermediate Accounting, Thirteenth Edition
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