Windsor Construction Company uses the percentage-of-completion method of accounting. In 2014, Windsor began work on a contract it had received which provided for a contract price of $3,000,000. Other details follow for 2014: Costs incurred during the year $1,400,000 Estimated costs to complete as of December 31 2014, $600,000 Billings during the year $1,000,000 Collections during the year $900,000 What should be the gross profit recognized in 2014? - $700,000 - $1,000,000 - $1,400,000 - $2,100,000
Windsor Construction Company uses the percentage-of-completion method of accounting. In 2014, Windsor began work on a contract it had received which provided for a contract price of $3,000,000. Other details follow for 2014: Costs incurred during the year $1,400,000 Estimated costs to complete as of December 31 2014, $600,000 Billings during the year $1,000,000 Collections during the year $900,000 What should be the gross profit recognized in 2014? - $700,000 - $1,000,000 - $1,400,000 - $2,100,000
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 26E
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![Windsor Construction Company uses the
percentage-of-completion method of accounting. In
2014, Windsor began work on a contract it had
received which provided for a contract price of
$3,000,000. Other details follow for 2014:
Costs incurred during the year $1,400,000
Estimated costs to complete as of December 31
2014, $600,000
Billings during the year $1,000,000
Collections during the year $900,000
What should be the gross profit recognized in
2014?
- $700,000
- $1,000,000
- $1,400,000
- $2,100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e408a48-12d3-4b27-987d-1ab7f5b37b5f%2Fb78d581f-d2d3-4a17-a8f6-44391e7172c4%2Fihu0xqe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Windsor Construction Company uses the
percentage-of-completion method of accounting. In
2014, Windsor began work on a contract it had
received which provided for a contract price of
$3,000,000. Other details follow for 2014:
Costs incurred during the year $1,400,000
Estimated costs to complete as of December 31
2014, $600,000
Billings during the year $1,000,000
Collections during the year $900,000
What should be the gross profit recognized in
2014?
- $700,000
- $1,000,000
- $1,400,000
- $2,100,000
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