5) XYZ prepared the following journal entry in 2019 regarding a project accounted for under the percentage of completion method: the project was started in 2018 and will be completed in 2020 CIP Construction Expenses Revenues from LT contracts 75,600 73,200 148,800 XYZ at the end of 2019 expects the lifetime gross profit on the project to equal 186,000. The project is 70% complete at the end of 2019. The project was 30% complete at the end of 2018 What did XYZ expect the lifetime gross profit on the project to be at the end of 2018? How much revenue did XYZ report from the project in 2018?

5) XYZ prepared the following journal entry in 2019 regarding a project accounted for under the percentage of completion method: the project was started in 2018 and will be completed in 2020 CIP Construction Expenses Revenues from LT contracts 75,600 73,200 148,800 XYZ at the end of 2019 expects the lifetime gross profit on the project to equal 186,000. The project is 70% complete at the end of 2019. The project was 30% complete at the end of 2018 What did XYZ expect the lifetime gross profit on the project to be at the end of 2018? How much revenue did XYZ report from the project in 2018?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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