Question
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount3,000,000
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:
Contract amount3,000,000
2020
2021
Cost:Actual
1,500,000
500,000
Estimated to complete
500,000
0
ADH recognizes revenue over time with respect to these contracts.
How much revenue would be recognized in 2020?
What is the Gross Profit in 2020?
What is the Journal Entry to record the Revenue and Gross Profit in 2020?
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Fundamentals Of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia A Libby
3rd Edition
0073527106, 9780073527109
