Widjaja Company is accounting for a long-term construction contract using percentage-of-completion method. It is a 4-year contract that is currently in its second year. THe
Widjaja Company is accounting for a long-term construction contract using percentage-of-completion method. It is a 4-year contract that is currently in its second year. THe latest estimates of total contract costs indicate that the contract will be completed at a loss to Widjaja Company.
a. What theoretical justification is there for Widjaja company's use of the percentage-of-completion method?
b. How would the company account for the projected loss?
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Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
6th Canadian Edition
1119731828, 9781119731825
