WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: 2020 2021 Costs incurred during the year $658,560 $1,408,000 Estimated costs to complete, as of December 31 909,440 –0– Billings during the year 421,000 2,187,000 Collections during the year 348,000 1,527,000 (a) What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ (b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized? Revenue recognized in 2020 $ Revenue recognized in 2021 $
WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: 2020 2021 Costs incurred during the year $658,560 $1,408,000 Estimated costs to complete, as of December 31 909,440 –0– Billings during the year 421,000 2,187,000 Collections during the year 348,000 1,527,000 (a) What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ (b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized? Revenue recognized in 2020 $ Revenue recognized in 2021 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
E12.
WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow:
2020
|
2021
|
|||
Costs incurred during the year | $658,560 | $1,408,000 | ||
Estimated costs to complete, as of December 31 | 909,440 | –0– | ||
Billings during the year | 421,000 | 2,187,000 | ||
Collections during the year | 348,000 | 1,527,000 |
(a) What portion of the total contract price would be recognized as revenue in 2020? In 2021?
Revenue recognized in 2020 |
$
|
|
Revenue recognized in 2021 |
$
|
(b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized?
Revenue recognized in 2020 |
$
|
|
Revenue recognized in 2021 |
$
|
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