IT Technology enters into a contract with the federal government to create a system for the price
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IT Technology enters into a contract with the federal government to create a system for the price of $ 16 million. IT receives $ 6.4 million when the contract is signed and the other $ 9.6 million upon completion of the project.
The government maintains control of the system during the creation process. IT estimates that $37,000 labor hours will be required to complete the product. During the current year $11,100 labor hours are used and during the following year, the remaining $25,900 hours were used.
What will be included in the journal entry at the end of the current year?
Related Book For
The Legal Ethical and Regulatory Environment of Business in a Diverse Society
ISBN: 978-0073524924
1st edition
Authors: Dawn Bennett-Alexander, Linda Harrison
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