Needs to be done in Excel and needs to be done in 8 hours – For YourBusinessTutor 1 answer below »

Needs to be done in Excel and needs to be done in 8 hours – For YourBusinessTutor

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A.
The Ugenti Construction Company contracted to construct a warehouse building for $2,600,000.  Construction began in 2006 and was completed in 2007.  Data relating to the contract are summarized below:
                                                                                   2006                  2007
      Costs incurred during the year……………..      $   360,000         $1,650,000
      Estimated costs to complete as of 12/31.           1,560,000                   –       
      Billings during the year ………………………           430,000           2,130,000
      Cash collections during the year…………..             320,000           2,280,000
 
Required:
1.   Compute the amount of gross profit or loss to be recognized in 2006 and 2007 using the percentage-of-completion method.
2.   Compute the amount of gross profit or loss to be recognized in 2006 and 2007 using the completed contract method.
3.   Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2006 using the percentage-of completion method.

B.  Sargeant Shipbuilding contracted to build a ship for $5,000,000.  Construction began in 2005 and was completed in 2007.  Data related to the contract are summarized below:
  2005 2006 2007Costs incurred during the year 1,450,000 2,000,000 1,100,000       Estimated costs to complete 3,000,000 1,600,000 ~Required:
1.   Compute the amount of gross profit or loss to be recognized in 2005, 2006 and 2007 using the percentage-of-completion method.
 
 
 
2.   Compute the amount of gross profit or loss to be recognized in 2005, 2006 and 2007 using the completed contract method.

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