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5. In 2022, Wilson Construction Corporation entered into a contract to construct a building for Credit Depot for $8,000,000. The building was completed in 2023.
| 5. In 2022, Wilson Construction Corporation entered into a contract to construct a building for Credit Depot for $8,000,000. The building was completed in 2023. 2022 information related to the contract is as follows: | ||||||||
| 2022 | ||||||||
| Costs incurred during the year | $4,500,000 | |||||||
| Estimated costs to complete as of year-end | 2,900,000 | |||||||
| Billings during the year | 1,800,000 | |||||||
| Cash collections during the year | 1,500,000 | |||||||
| Wilson recognizes revenue over time according to the percentage of completion. Calculate the amount of revenue and gross profit to be recognized in 2022. |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
