The company signed a $1,800,000 contract to build an environmentally friendly access trail to Timpanogas Caves. The

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The company signed a $1,800,000 contract to build an environmentally friendly access trail to Timpanogas Caves. The project was expected to take approximately three years. The following information was collected for each year of the project, Year 1, Year 2, and Year 3:


The company signed a $1,800,000 contract to build an environment


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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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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