Question
Splish Construction Company uses the percentage-of-completion method of accounting. In 2020, Splish began work under contract #E2-D2, which provided for a contract price of $2,170,000.
Splish Construction Company uses the percentage-of-completion method of accounting. In 2020, Splish began work under contract #E2-D2, which provided for a contract price of $2,170,000. Other details follow:
| 2020 | 2021 | |||
| Costs incurred during the year | $615,810 | $1,422,000 | ||
| Estimated costs to complete, as of December 31 | 963,190 | 0 | ||
| Billings during the year | 426,000 | 2,170,000 | ||
| Collections during the year | 343,000 | 1,520,000 |
(a)
What portion of the total contract price would be recognized as revenue in 2020? In 2021?
| Revenue recognized in 2020 | $ | |
| Revenue recognized in 2021 | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals Of Oil And Gas Accounting
Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson
4th Edition
0878147934, 9780878147939
