Khodra Construction has consistently used the percentage-of-completion method of recognizing income. In 2021 Khodra started work on a $3,000,000 construction contract, which was completed in 2022. Progress billings were $1,100,000 and $1,900,000 for 2021 and 2022 respectively. Costs incurred were $900,000 and $1,800,000 for 2021 and 2022 respectively. $700,000 and $2,300,000 were collected in 2021 and 2022 respectively. The estimated cost to completed at the end of 2021 was $1,800,000 How much gross profit should Khodra have recognized in 2021? $Answer
Khodra Construction has consistently used the percentage-of-completion method of recognizing income. In 2021 Khodra started work on a $3,000,000 construction contract, which was completed in 2022. Progress billings were $1,100,000 and $1,900,000 for 2021 and 2022 respectively. Costs incurred were $900,000 and $1,800,000 for 2021 and 2022 respectively. $700,000 and $2,300,000 were collected in 2021 and 2022 respectively. The estimated cost to completed at the end of 2021 was $1,800,000 How much gross profit should Khodra have recognized in 2021? $Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Khodra Construction has consistently used the percentage-of-completion method of recognizing income. In 2021 Khodra started work on a $3,000,000 construction contract, which was completed in 2022.
Progress billings were $1,100,000 and $1,900,000 for 2021 and 2022 respectively. Costs incurred were $900,000 and $1,800,000 for 2021 and 2022 respectively. $700,000 and $2,300,000 were collected in 2021 and 2022 respectively. The estimated cost to completed at the end of 2021 was $1,800,000
How much gross profit should Khodra have recognized in 2021? $Answer
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