X Corp recorded the following journal entry for a long-term project during the year ended December, 2022: CIP 124,860 Expenses 392,140 Revenues 517,000 The project was started in 2021. It was 45% complete at the end of 2021. It is 92% complete at the end of 2022. X Corp at the end of 2022 expects the lifetime gross profit on the project to equal $258, 000. Please identify the following:1) What is the total sales price of the project?2) What was the credit to revenue in 2021? 3) What did X Corp believe the project's lifetime gross profit would be at the end of 2021?
X Corp recorded the following journal entry for a long-term project during the year ended December, 2022: CIP 124,860 Expenses 392,140 Revenues 517,000 The project was started in 2021. It was 45% complete at the end of 2021. It is 92% complete at the end of 2022. X Corp at the end of 2022 expects the lifetime gross profit on the project to equal $258, 000. Please identify the following:1) What is the total sales price of the project?2) What was the credit to revenue in 2021? 3) What did X Corp believe the project's lifetime gross profit would be at the end of 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:X Corp recorded the following journal entry for a long-term project during the year ended
December, 2022: CIP 124,860 Expenses 392,140 Revenues 517,000 The project was started in
2021. It was 45% complete at the end of 2021. It is 92% complete at the end of 2022. X Corp at
the end of 2022 expects the lifetime gross profit on the project to equal $258,000. Please identify
the following:1) What is the total sales price of the project? 2) What was the credit to revenue in
2021? 3) What did X Corp believe the project's lifetime gross profit would be at the end of 2021?
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