During 2020, Teal Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $393,900 $889,380 $1,061,000 Estimated costs to complete 616,100 208,620 -0- Billings to date 303,000 902,000 1,620,000 Collections to date 273,000 814,000 1,418,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 Gross profit recognized in 2021 Gross profit recognized in 2022 $ %24 %24
During 2020, Teal Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $393,900 $889,380 $1,061,000 Estimated costs to complete 616,100 208,620 -0- Billings to date 303,000 902,000 1,620,000 Collections to date 273,000 814,000 1,418,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Gross profit recognized in 2020 Gross profit recognized in 2021 Gross profit recognized in 2022 $ %24 %24
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 6P
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