CCS is a construction company that builds roads in the Northwest Territories (NWT). CCS uses the percentage-of-completion
Question:
CCS is a construction company that builds roads in the Northwest Territories (NWT). CCS uses the percentage-of-completion method and measures completion on the basis of kilometres completed. In November 20X9, CCS signed an agreement with the NWT government to build 50 kilometres of new road for a total cost of $40 million. The contract would likely take three years to complete and would start in the spring of 20X10. Over the next three years, 15 kilometres were completed in 20X10, 22 kilometres completed in 20X11, and 13 kilometres completed in 20X12.
Required:
Calculate the amount of revenue that would be recognized in 20X10, 20X11, and 20X12.
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick