Please dont give solutions image based thanx 562 QUESTION: ACCOUNTING FOR LONG-TERM CONTRACTS3748291013455Steadfast Construction Ltd. builds apartment buildings & uses the percentage of completion methodfor revenue recognition. Information on a $2.8 million three-year construction contract is as follows:202120222023Costs incurred to date (at Dec 31)500,000 $1,125,000 $1,825,000$1,500,000 $ 875,000 $Estimated costs to complete (at Dec 31)Progress billings during the year (non-refundable $ 650,000 $1,200,000 $950,000Collections during the year450,000 $1,025,000 $1,150,000$Required:$1. Calculate the gross profit that should be recognized in 2022.2. Prepare the journal entrties that should be recorded for 2022.Note: Journal Entries for 2021 and 2023 are NOT required.

Accounting for long-term contracts is the one where we recognize revenue and costs associated with a…

Steadfast Construction Ltd. builds apartment buildings & uses the percentage of completion method for revenue recognition. Information on a $2.8 million three-year construction contract is as follows: $ $ Costs incurred to date (at Dec 31) Estimated costs to complete (at Dec 31) Progress billings during the year (non-refundable $ Collections during the year $ 2021 2022 2023 500,000 $1,125,000 $1,825,000 1,500,000 $ 875,000 $ 650,000 $1,200,000 $ 950,000 450,000 $1,025,000 $1,150,000

Steadfast Construction Ltd. builds apartment buildings & uses the percentage of completion method for revenue recognition. Information on a $2.8 million three-year construction contract is as follows: $ $ Costs incurred to date (at Dec 31) Estimated costs to complete (at Dec 31) Progress billings during the year (non-refundable $ Collections during the year $ 2021 2022 2023 500,000 $1,125,000 $1,825,000 1,500,000 $ 875,000 $ 650,000 $1,200,000 $ 950,000 450,000 $1,025,000 $1,150,000

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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