The company signed a $1,200,000 contract to build an environmentally friendly access trail to Deseret Peak. The
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The company signed a $1,200,000 contract to build an environmentally friendly access trail to Deseret Peak. The project was expected to take approximately 3 years. The following information was collected for each year of the project, Year 1, Year 2, and Year 3:
The company uses the percentage-of-completion method of computing revenue from long-term construction contracts. Assume that the company employs the cost-to-cost method of estimating the percentage of completion. Make the journal entries to record revenue and cost for the construction project
(1) Year 1,
(2) Year 2, and
(3) Year3.
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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