Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2019, Hamilton began work under contract #E2-D2,
Question:
Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2019, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow:
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Instructions
a. What portion of the total contract price would be recognized as revenue in 2019? In 2020?
b. Assuming the same facts as those above except that Hamilton uses the cost-recovery method of accounting, what amount of the total contract price would be recognized as revenue in 2020?
c. Prepare a complete set of journal entries for 2019 (using the percentage-of-completion method).
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Step by Step Answer:
a 2019 640000 X 2200000 880000 1600000 20202200000 contract pr...View the full answer
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Related Book For 
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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