Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

WHAT IS THE AMOUNT OF REVENUE IS RECOGNIZED IN 20X2? In 20x1, Gorgeous Too Co. enters into a fixed-price construction contract with a customer. At

image text in transcribed

WHAT IS THE AMOUNT OF REVENUE IS RECOGNIZED IN 20X2?

image text in transcribed
In 20x1, Gorgeous Too Co. enters into a fixed-price construction contract with a customer. At contract inception, Gorgeous Too Co. assesses its performance obligations in the contract and concludes that it has a single performance obligation that is satisfied over time. Gorgeous Too Co. determines that the measure of progress that best depicts its performance on the contract is input method based on costs incurred. Information on the contract follows: 20x1 20x2 Cumulative contract costs incurred 2,250,000 4,800,000 Cumulative profits recognized 750,000 1,200,000 Progress billings 2,400,000 3,600,000 Collections on progress billings 2,000,000 4,000,000 The contract is completed in 20x2. What amount of revenue is recognized in 20x2

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

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

9781119563099

Students also viewed these Accounting questions