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Windsor Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $894,000. The following data pertain to the construction period.

		2017		2018		2019
Costs to date		$274,160		$417,200		$607,000
Estimated costs to complete		321,840		178,800		0
Progress billings to date		272,000		550,000		894,000
Cash collected to date		242,000		500,000		894,000

(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

Gross profit recognized in 2017		$
Gross profit recognized in 2018		$
Gross profit recognized in 2019		$

(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

Gross profit recognized in 2017		$
Gross profit recognized in 2018		$
Gross profit recognized in 2019		$

Problem 18-9 Windsor Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The comple> will be billed to the purchasing company at $894,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2017 $274,160 321,840 272,000 242,000 2018 $417,200 178,800 550,000 500,000 2019 $607,000 -0- 894,000 894,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2017 Gross profit recognized in 2018 4 Gross profit recognized in 2019 (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2017 Gross profit recognized in 2018 Gross profit recognized in 2019 Click if you would like to Show Work for this question: Open Show Work

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