Oriole Construction Company uses the percentage-of-completion method of accounting. In 2025, Oriole began work under a contract with a contract price of $1,470,000. 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 (b) eTextbook and Media List of Accounts $ Revenue recognized in 2026 2025 $1,027,500 What portion of the total contract price would be recognized as revenue in 2025? In 2026? 342,500 $ 827,500 250,000 1102500 2026 $1,340,000 367500 -0- 1,470,000 1,470,000 Assuming the same facts as those above except that Oriole uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Attempts: 1 of 5 used

Oriole Construction Company uses the percentage-of-completion method of accounting. In 2025, Oriole began work under a contract with a contract price of $1,470,000. 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 (b) eTextbook and Media List of Accounts $ Revenue recognized in 2026 2025 $1,027,500 What portion of the total contract price would be recognized as revenue in 2025? In 2026? 342,500 $ 827,500 250,000 1102500 2026 $1,340,000 367500 -0- 1,470,000 1,470,000 Assuming the same facts as those above except that Oriole uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2026? Attempts: 1 of 5 used

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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Question

Oriole Construction Company uses the percentage-of-completion method of accounting. In 2025, Oriole began work under a contract
with a contract price of $1,470,000. 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.
(b)
Revenue recognized in 2025
60
eTextbook and Media
List of Accounts
$
Revenue recognized in 2026 $
2025
$1,027,500
342,500
What portion of the total contract price would be recognized as revenue in 2025? In 2026?
Revenue recognized in 2026 $
827,500
250,000
1102500
2026
$1,340,000
367500
-0-
1,470,000
1,470,000
Attempts: 1 of 5 used
Assuming the same facts as those above except that Oriole uses the completed-contract method of accounting, what portion of
the total contract price would be recognized as revenue in 2026?

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