7. On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station, estimated to complete in 2 years at a cost of $4,500,000. The fixed fee stipulated in the contract is $675,000. During the year Waleed company incurred cost of $1,200,000. The estimated cost at December 31, 2020 to complete the contract is $1,800,000 and billed for $900,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method

7. On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station, estimated to complete in 2 years at a cost of $4,500,000. The fixed fee stipulated in the contract is $675,000. During the year Waleed company incurred cost of $1,200,000. The estimated cost at December 31, 2020 to complete the contract is $1,800,000 and billed for $900,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

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