Prepare a schedule showing the profit to be recognized each year. Prepare all journal entries required for all years using the percentage of completion method. Prepare all journal entries required for all years using the completed contracts method.
Prepare a schedule showing the profit to be recognized each year. Prepare all journal entries required for all years using the percentage of completion method. Prepare all journal entries required for all years using the completed contracts method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:In 20Y5, Duncan Construction Company agreed to construct an apartment building at a price of
$1,200,000. The information relating to the costs and billings for the contract is shown below.
Cost incurred to date
Est. cost yet to be incurred
Customer billings to date
Collections of billings to date
20Y5
$ 280,000
520,000
150,000
120,000
●
20Y6
$ 600,000
200,000
500,000
320,000
20Y7
$ 785,000
0
1,200,000
940,000
• Prepare a schedule showing the profit to be recognized each year.
Prepare all journal entries required for all years using the percentage of completion method.
Prepare all journal entries required for all years using the completed contracts method.
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