On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station,
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On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station, estimated to complete in 2 years at a cost of $6,000,000. The fixed fee stipulated in the contract is $900,000. During the year Waleed company incurred cost of $1,600,000. The estimated cost at December 31, 2020 to complete the contract is $2,400,000 and billed for $1,200,000.
Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method.
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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