Question
WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project
WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows:
| Year 1 | Year 2 | Year 3 | |
| Percentage of work completed | 25% | 35% | 40% |
| Costs incurred during the year | $86,000 | $124,000 | $ 90,000 |
| Progress billings during the year | 80,000 | 180,000 | 190,000 |
| Cash collected during the year | 65,000 | 170,000 | 220,000 |
How much revenue should WW Guy recognize during Year 1 if WW Guy uses the percentage of completion method?
| $113,750 |
| $80,000 |
| $38,750 |
| $450,000 |
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Financial And Managerial Accounting
Authors: Jan R. Williams, Joseph V. Carcello, Mark S. Bettner, Sue Haka, Susan F. Haka
14th International Edition
0071101217, 9780071101219
