Crane Construction Company uses the percentage-of-completion method of accounting. In 2020, Crane began work under contract#E2-D2, which provided for a contract price of $2,224,000. Other details follow:20202021Costs incurred during the year$644,800$1,417,000Estimated costs to complete, as of December 31967,200-0-Billings during the year424,0002,224,000Collections during the year351,0001,519,000(a)× Your answer is incorrect.What portion of the total contract price would be recognized as revenue in 2020? In 2021?Revenue recognized in 2020$Revenue recognized in 20218897101334290

As per the percentage-of-completion method, the percentage-of-completion is determined by dividing…

Answered: a) × Your answer is incorrect. What…

a) × Your answer is incorrect. What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ 889710 Revenue recognized in 2021 $ 1334290

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Crane Construction Company uses the percentage-of-completion method of accounting. In 2020, Crane began work under contract
#E2-D2, which provided for a contract price of $2,224,000. Other details follow:
2020
2021
Costs incurred during the year
$644,800
$1,417,000
Estimated costs to complete, as of December 31
967,200
-0-
Billings during the year
424,000
2,224,000
Collections during the year
351,000
1,519,000
(a)
× Your answer is incorrect.
What portion of the total contract price would be recognized as revenue in 2020? In 2021?
Revenue recognized in 2020
$
Revenue recognized in 2021
889710
1334290

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