MCQ 1 A construction company uses the percentage-of-completion method of accounting. In 2007, the company began work on a government contract which had a contract price of $4,000,000 and estimated costs of $3,000,000. Additional data were as follows: 2007 2008 $600,000 $2,550,000 Costs incurred during the year Estimated costs to complete, as of 12/31/20072,400,000 Billing during the year Collections during the year 720,000 3,080,000 500,000 3,100,000

MCQ 1 A construction company uses the percentage-of-completion method of accounting. In 2007, the company began work on a government contract which had a contract price of $4,000,000 and estimated costs of $3,000,000. Additional data were as follows: 2007 2008 $600,000 $2,550,000 Costs incurred during the year Estimated costs to complete, as of 12/31/20072,400,000 Billing during the year Collections during the year 720,000 3,080,000 500,000 3,100,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 34E

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