During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was

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During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2014. The following information is available.

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Instructions(a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of completion method is used.(b) Prepare all necessary journal entries for 2013.(c) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method isused.

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Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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