Carla Vista Construction Company uses the percentage-of-completion method of accounting. In 2025, Carla Vista began work undercontract #E2-D2, which provided for a contract price of $2,219,000. Other details follow:Costs incurred during the yearEstimated costs to complete, as of December 31Billings during the yearCollections during the year(a)Your answer is correct.Revenue recognized in 2025Revenue recognized in 2026$2025$620,490970,510$428,000350,000What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.)865,41020261,353,590$1,429,000-0-1,699,0001,471,000 Assuming the same facts as those above except that Carla Vista uses the cost-recovery method of accounting, what portion of thetotal contract price would be recognized as revenue in 2026?Revenue recognized in 2026tA$2,219,000

Computation of % of completion, revenue recognition and Gross Profit - Carla Vista Construction…

contract #E2-D2, which provided for a contract price of $2,219,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2025 $620,490 970,510 428,000 350,000 2026 $1,429,000 -0- 1,699,000 1,471,000

contract #E2-D2, which provided for a contract price of $2,219,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year 2025 $620,490 970,510 428,000 350,000 2026 $1,429,000 -0- 1,699,000 1,471,000

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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