Question 1 On July 1, 2017, Concord Construction Company Inc. contracted to buil

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Question 1 On July 1, 2017, Concord Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,910,000. On July 1, Concord 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 At At 12/31/17 12/31/18 12/31/19 Contract costs incurred to date Estimated costs to complete the contract Billings to Gumbel $327,800 $1,180,000 $2,090,400 820,000 1,162,200 300,000 1,110,0001,870,000 (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 2017, 2018, and 2019. (Ignore income taxes.) (If answer is o, please enter 0. Do not leave any field blank.) 2017 $327800 162200 1490000 Costs to date (12/31/17) Estmated Costs to Complete Extimated Total Coats 20%

Explanation / Answer

b) Under completed contract method,Profit or loss is recognized on completion of contract Profit or Loss 2017 0 2018 0 2019 Total conract price 1910000 Less: Cost incurred 2090400 Loss -180400

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