Microsoft began a construction project in 2024 with a contract price of $160 million to be received when the project is completed in 2026. During 2024, Mic incurred $36 million of costs and estimates an additional $82 million of costs to complete the project. Microsoft recognizes revenue over time and for this pre recognizes revenue over time according to the percentage of the project that has been completed. In 2025, Microsoft incurred additional costs of $57 million and estimated an additional $35 million in costs to complete the project. Microsoft: Note: Do not round intermediate calculations.

Microsoft began a construction project in 2024 with a contract price of $160 million to be received when the project is completed in 2026. During 2024, Mic incurred $36 million of costs and estimates an additional $82 million of costs to complete the project. Microsoft recognizes revenue over time and for this pre recognizes revenue over time according to the percentage of the project that has been completed. In 2025, Microsoft incurred additional costs of $57 million and estimated an additional $35 million in costs to complete the project. Microsoft: Note: Do not round intermediate calculations.

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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