Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 Account receivable on contract 100,000 Construction expense 105,000 Construction in progress 122,000 Partial billings on contract 100,000 2020 Account receivable on contract 300,000 Construction expense 192,000 Construction in progress 364,000 Partial billings on contract 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?
Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 Account receivable on contract 100,000 Construction expense 105,000 Construction in progress 122,000 Partial billings on contract 100,000 2020 Account receivable on contract 300,000 Construction expense 192,000 Construction in progress 364,000 Partial billings on contract 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?
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
Related questions
Question
Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows:
2019
Construction expense 105,000
Construction in progress 122,000
Partial billings on contract 100,000
2020
Account receivable on contract 300,000
Construction expense 192,000
Construction in progress 364,000
Partial billings on contract 420,000
Profit recognized in 2019 should be?
Profit recognized in 2020 should be?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT