Question: JJ Construction Inc. entered into a contract with a customer to build a movable storage facility on January 1, 2020, for $1,800,000. JJ Construction Inc.

JJ Construction Inc. entered into a contract with a customer to build a movable storage facility on January 1, 2020, for $1,800,000. JJ Construction Inc. owns the work in process and constructs this type of storage unit for a number of customers. The customer made a down payment of 10% of the project, with an additional 10% due at the end of year one and the remaining due when it takes control of the facility. The facility is expected to be completed in two years for a total cost of $1,440,000. Actual costs incurred through December 31, 2020, are $600,000. Determine the amount of revenue to record in 2020.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!