During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was

Question:

During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2021. The following information is available.

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 2020.

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

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Related Book For book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

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

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Question Posted: Sep 21, 2024 05:14 AM

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During 2019, Nilsen Company started a construction job with a contract price of $1,600,000. The job was

Question:

Step by Step Answer:

a Gross profit recognized in 2019 2020 2021 Contract price 1600000 1600000 1600000 Costs Costs to da...View the full answer

Intermediate Accounting IFRS

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