Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do you get numbers 1-10? the problems are attached below PROBLEM 1 : Percentage of Completion Method USE THE FOLLOWING INFORMATION FOR THE QUESTIONS

how do you get numbers 1-10? the problems are attached below

image text in transcribed
PROBLEM 1 : Percentage of Completion Method USE THE FOLLOWING INFORMATION FOR THE QUESTIONS THAT FOLLOWS A company began work on a long-term construction contract in 1995 . The contract price was $3. 000. 000 Year-end information related to the contract is as follows :" 2019 2020 2021 2022 Estimated total cost $2, 500, 000 $2. 500, 000 Cost incurred $2, 500, 000 700, 000 $2, 500, 000 Billings 900, 000 400, 000 800, 000 500, 000 200, 000 Collections 1, 000 , 000 1, 000, 000 600, 000 200, 000 1 , 200. 000 1, 000, 000 If the company uses the percentage - of- completion method of accounting for this contract , find :" REQUIREMENT :` 1 . Recognized gross profit ( loss ) in Year 2019. 2 . Recognized revenue in Year 2020 . 3 . The recognized contract asset ( liability ) as of the end of Year 2020 . 4 . The Percentage - of - completion as of the end of Year 2021 5. Recognized revenue in Year 2022 PROBLEM 2: Zero - profit Method Assume the same information as the PROBLEM 1 , except that the company opt to use the zero - profit method in recognizing revenue . REQUIREMENT :` 6. Recognized gross profit ( loss ) in Year 2019 7. Recognized revenue in Year 2020 . 1. The recognized contract asset ( liability ) as of the end of Year 2020 . 9. The Percentage - of - completion as of the end of Year 2021 10 . Recognized revenue in Year 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jeffrey Waybright, Robert Kemp

1st Edition

013606048X, 9780136060482

More Books

Students also viewed these Accounting questions