Revenue: % of Completion On March 15, 20x3, Mayer Company entered into a 4 year project for the total price of $9,000,000. You have the following information for the first two years of the service contract: In 20x3, Mayer incurred $1,200,000 of costs and believed it would need to incur an additional $6,300,000 to finish the project. In 20x4, Mayer incurred $2,700,000 of costs and believed it would need to incur an additional $4,100,000 to finish the project. What is the revenue that will be realized on this contract in 20x3 and 20x4?

Revenue: % of Completion On March 15, 20x3, Mayer Company entered into a 4 year project for the total price of $9,000,000. You have the following information for the first two years of the service contract: In 20x3, Mayer incurred $1,200,000 of costs and believed it would need to incur an additional $6,300,000 to finish the project. In 20x4, Mayer incurred $2,700,000 of costs and believed it would need to incur an additional $4,100,000 to finish the project. What is the revenue that will be realized on this contract in 20x3 and 20x4?

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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