Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

On March 1, 2017,a company contracted to construct a factory building for a total contract price of $8,330,000. The building was completed by October 31,

On March 1, 2017,a company contracted to construct a factory building for a total contract price of $8,330,000. The building was completed by October 31, 2019.

Contract costs incurred during the year 2017: $2,662,800 2018: $2,188,000 2019: $2,389,200

Estimated costs to complete the contract at 12/31 2017: 3,677,200 2018: 2,389,200 2019: -0-

Billings to Fabrik during the year 2017: 3,180,000 2018: 3,480,000 2019: 1,670,000

How do you get the revenue recognized, percent complete, and the profit/loss recognized for 2017 2018? when you use the percentage of completion method

2019: how do you get the following?

total revenue recognized

total profit on contract

profit previously recognized

profit/loss recognized

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Management Accounting Information for Decision-Making and Strategy Execution

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

6th Edition

137024975, 978-0137024971

Students also viewed these Accounting questions