Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2025, Ivanhoe began work under contract #E2-D2, which provided for a contract price of $2,237,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. 10 Revenue recognized in 2025 $ 2025 $616,740 1,006,260 414,000 352,000 What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) Revenue recognized in 2026 $ 850060 2026 $1,441,000 1386940 -0- 1,717,000 1,508,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2025, Ivanhoe began work under
contract #E2-D2, which provided for a contract price of $2,237,000. Other details follow:
Costs incurred during the year
Estimated costs to complete, as of December 31
Billings during the year
Collections during the year
(a)
Your answer is correct.
Revenue recognized in 2025
Revenue recognized in 2026
LA
What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.)
$
2025
$616,740
1,006,260
414,000 1,717,000
352,000
2026
$1,441,000
850060
1386940
-0-
1,508,000
Transcribed Image Text:Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2025, Ivanhoe began work under contract #E2-D2, which provided for a contract price of $2,237,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 LA What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) $ 2025 $616,740 1,006,260 414,000 1,717,000 352,000 2026 $1,441,000 850060 1386940 -0- 1,508,000
* Your answer is incorrect.
Assuming the same facts as those above except that Ivanhoe uses the cost-recovery method of accounting, what portion of the
total contract price would be recognized as revenue in 2026?
Revenue recognized in 2026
$
2237000
Transcribed Image Text:* Your answer is incorrect. Assuming the same facts as those above except that Ivanhoe uses the cost-recovery method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Revenue recognized in 2026 $ 2237000
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