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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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