On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station, estimated to complete in 2 years at a cost of $6,000,000. The fixed fee stipulated in the contract is $900,000. During the year Waleed company incurred cost of $1,600,000. The estimated cost at December 31, 2020 to complete the contract is $2,400,000 and billed for $1,200,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method
On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station, estimated to complete in 2 years at a cost of $6,000,000. The fixed fee stipulated in the contract is $900,000. During the year Waleed company incurred cost of $1,600,000. The estimated cost at December 31, 2020 to complete the contract is $2,400,000 and billed for $1,200,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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On April 1, 2020, Waleed company entered into a cost-plus fixed-fee contract to construct a power station, estimated to complete in 2 years at a cost of $6,000,000. The fixed fee stipulated in the contract is $900,000. During the year Waleed company incurred cost of $1,600,000. The estimated cost at December 31, 2020 to complete the contract is $2,400,000 and billed for $1,200,000. Prepare a schedule to compute amount of gross profit to be recognized under the percentage of completion method
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