Question
2. Construct Inc elects to apply the percent of completion method to all long-term contracts. The contract price is set at $3,000,000 and additional information
2. Construct Inc elects to apply the percent of completion method to all long-term contracts.
The contract price is set at $3,000,000 and additional information is as shown:
2020 2021 2022
Cost spent to date $ 420,000 $1,540,000 $2,150,000
Additional Estimated costs to complete 1,680,000 660,000 0
Progress Billings $450,000 $1,700,000 $550,000
Cash collected 375,000 1,375,000 950,000
REQUIRED: Show your work
Determine the amount of revenue and profit that will be recognized in 2020, 2021 and 2022 respectively.
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The Internet Market Research Audit
Authors: Cambridge
1st Edition
1902433742, 978-1902433745
