7. 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 $4,500,000. The fixed fee stipulated in the contract is $675,000. During the year Waleed company incurred cost of $1,200,000. The estimated cost at December 31, 2020 to complete the contract is $1,800,000 and billed for $900,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method
7. 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 $4,500,000. The fixed fee stipulated in the contract is $675,000. During the year Waleed company incurred cost of $1,200,000. The estimated cost at December 31, 2020 to complete the contract is $1,800,000 and billed for $900,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:7. 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 $4,500,000. The fixed fee stipulated in the contract is $675,000. During the year Waleed
company incurred cost of $1,200,000. The estimated cost at December 31, 2020 to complete the contract is $1,800,000 and
billed for $900,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of
completion method
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