Revenue Recognition over Time Wells Corp. appropriately determined that Construction Project A was a single performance obligation that is satisfied over time. For this project, Wells had previously recognized revenue of $250,000 out of a total of $800,000 for the project. During the current year, Wells accumulated the following information about this project: construction costs incurred for the year, $92,000 construction costs incurred to date (including this year's costs), $200,000 estimated costs to complete, $300,000 Based on the previous information, prepare a schedule to determine the amount of loss that Wells should recognize for the current year.

Revenue Recognition over Time Wells Corp. appropriately determined that Construction Project A was a single performance obligation that is satisfied over time. For this project, Wells had previously recognized revenue of $250,000 out of a total of $800,000 for the project. During the current year, Wells accumulated the following information about this project: construction costs incurred for the year, $92,000 construction costs incurred to date (including this year's costs), $200,000 estimated costs to complete, $300,000 Based on the previous information, prepare a schedule to determine the amount of loss that Wells should recognize for the current year.

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 18RE

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