Cosmo Computer Consultants (CCC) signed a contract in 2022 to develop a computer network system for Platinum Entertainment. Cosmo uses the percentage-of- completion method and determines its measure of progress using the cost-to-cost approach. The firm provided the following information for 2022. Contract Price Actual construction costs incurred during the year Estimated total costs Progress billings made during the year Cash collections during the year $85,000 2022 $12,000 60,000 30,500 25,000 Compute the percentage completed, gross profit recognized, and the amount of the revenue recorded in 2022. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Cumulative percent complete Current year revenue Gross profit (loss) recognized in the current year
Cosmo Computer Consultants (CCC) signed a contract in 2022 to develop a computer network system for Platinum Entertainment. Cosmo uses the percentage-of- completion method and determines its measure of progress using the cost-to-cost approach. The firm provided the following information for 2022. Contract Price Actual construction costs incurred during the year Estimated total costs Progress billings made during the year Cash collections during the year $85,000 2022 $12,000 60,000 30,500 25,000 Compute the percentage completed, gross profit recognized, and the amount of the revenue recorded in 2022. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Cumulative percent complete Current year revenue Gross profit (loss) recognized in the current year
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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Transcribed Image Text:Cosmo Computer Consultants (CCC) signed a contract in 2022 to develop a computer network system for Platinum Entertainment. Cosmo uses the percentage-of-
completion method and determines its measure of progress using the cost-to-cost approach. The firm provided the following information for 2022.
Contract Price
Actual construction costs incurred during the year
Estimated total costs
Progress billings made during the year
Cash collections during the year
$85,000
2022
$12,000
60,000
30,500
25,000
Transcribed Image Text:Compute the percentage completed, gross profit recognized, and the amount of the revenue recorded in 2022.
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions
tab you will be marked wrong.)
Cumulative percent complete
Current year revenue
Gross profit (loss) recognized in the current year
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