During 2020, Nilsen Company started a construction job with a contract price of $1.6 million. The job

Question:

During 2020, Nilsen Company started a construction job with a contract price of $1.6 million. The job was completed in 2022. The following information is available. The contract is non-cancellable.

Instructions

a. Calculate the amount of gross profit to be recognized each year, assuming the percentage-ofcompletion method is used.

b. Prepare all necessary journal entries for 2021.

c. Calculate the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

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Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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Question Posted: Dec 09, 2022 02:57 AM

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During 2020, Nilsen Company started a construction job with a contract price of $1.6 million. The job

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a Gross profit recognized in 2020 2021 2022 Contract price 1600000 1600000 1600000 Costs Costs to da...View the full answer

Intermediate Accounting Volume 1

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