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← Chapter 17 - Homework Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress 3.57/20 On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below. 2025 2026 2027 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 (a1) - Your answer is partially correct. Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2025 Costs to Date (12/31/25) Estimated Costs to Complete Estimated Total Costs Percent Complete Costs Incurred Revenue Recognized Profit/(Loss) Recognized in 2025 eTextbook and Media Solution Save for Later +A +A +A 2,880,000 6,400,000 2,880,000 45 8,400,000 3,780,000 3,780,000 % SUPPORT Assistance Used Attempts: unlimited Submit Answer (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

← Chapter 17 - Homework Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress 3.57/20 On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below. 2025 2026 2027 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 (a1) - Your answer is partially correct. Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2025 Costs to Date (12/31/25) Estimated Costs to Complete Estimated Total Costs Percent Complete Costs Incurred Revenue Recognized Profit/(Loss) Recognized in 2025 eTextbook and Media Solution Save for Later +A +A +A 2,880,000 6,400,000 2,880,000 45 8,400,000 3,780,000 3,780,000 % SUPPORT Assistance Used Attempts: unlimited Submit Answer (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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on march 1 2025 pechstein company contracted to construct a factory building for Fabrik Manufacturing Inc., for a total contract price of $8,400,000.

← Chapter 17 - Homework Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress 3.57/20 On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below. 2025 2026 2027 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 (a1) - Your answer is partially correct. Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2025 Costs to Date (12/31/25) Estimated Costs to Complete Estimated Total Costs Percent Complete Costs Incurred Revenue Recognized Profit/(Loss) Recognized in 2025 eTextbook and Media Solution Save for Later +A +A +A 2,880,000 6,400,000 2,880,000 45 8,400,000 3,780,000 3,780,000 % SUPPORT Assistance Used Attempts: unlimited Submit Answer (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Transcribed Image Text:← Chapter 17 - Homework Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress 3.57/20 On March 1, 2025, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2027. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2025, 2026, and 2027 are given below. 2025 2026 2027 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 (a1) - Your answer is partially correct. Using the percentage-of-completion method, prepare a schedule to compute the profit or loss to be recognized as a result of this contract for the year ended December 31, 2025. (Ignore income taxes.) (If answer is O, please enter O. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2025 Costs to Date (12/31/25) Estimated Costs to Complete Estimated Total Costs Percent Complete Costs Incurred Revenue Recognized Profit/(Loss) Recognized in 2025 eTextbook and Media Solution Save for Later +A +A +A 2,880,000 6,400,000 2,880,000 45 8,400,000 3,780,000 3,780,000 % SUPPORT Assistance Used Attempts: unlimited Submit Answer (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
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