During 2015, Nilsen Company started a construction job with a contract price of 1,600,000 The job was completed in 2017 The following information is available Instructions (a) Compute the amount of gross profit to be recognized each year, assuming the percentage ofcompletion method is used (b) Prep...

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During 2015, Nilsen Company started a construction job with a contract price of 1,600,000. The job was

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During 2015, Nilsen Company started a construction job with a contract price of €1,600,000. The job was completed in 2017. 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-ofcompletion method is used.

(b) Prepare all necessary journal entries for 2016.

(c) Compute the amount of gross profit to be recognized each year, assuming the cost-recovery method is used.

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Mar 18, 2024 04:00 AM

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During 2015, Nilsen Company started a construction job with a contract price of 1,600,000. The job was

Question:

2015 2016 2017 Costs incurred to date 400,000 825,000 1,070,000 Estimated costs to complete 600,000 275,000 -0- Billings to date 300,000 900,000 1,600,000 Collections to date 270,000 810,000 1,425,000

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Intermediate Accounting IFRS Edition

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