6.) Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2021, to

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6.) Curtiss Construction Company, Inc., entered into a
fixed-price contract with Axelrod Associates on July 1, 2021, to
construct a four-story office building. At that time, Curtiss
estimated that it would take between two and three years to
complete the project. The total contract price for construction of
the building is $4,720,000. The building was completed on December
31, 2023. Estimated percentage of completion, accumulated contract
costs incurred, estimated costs to complete the contract,
and accumulated billings to Axelrod under the
contract were as follows:
Required:
1. Compute gross profit or loss to be recognized as a
result of this contract for each of the three years. Curtiss
concludes that the contract does not qualify for revenue
recognition over time.
2. Assuming Curtiss recognizes revenue over
time according to percentage of completion, compute gross profit or
loss to be recognized in each of the three years.
3. Assuming Curtiss recognizes revenue over
time according to percentage of completion, compute the amount to
be shown in the balance sheet at the end of 2021 and 2022 as either
cost in excess of billings or billings in excess of costs.
1. Compute gross profit or loss to be recognized as a result of
this contract for each of the three years. Curtiss concludes
that the contract does not qualify for revenue recognition over
time. 2. Assuming Curtiss recognizes revenue over time according to
percentage of completion, compute gross profit or loss to be
recognized in each of the three years. (Leave no cells blank -
be certain to enter "0" wherever required. Loss amounts should be
indicated with a minus sign.)
Year Req 1
profit, loss (upon completion) Req 2
profit, loss (over time)
2021
2022
2023
Req 3
Balance sheet (partial)
current assets
2021
2022
current liabilities