Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. answer both questions coursherotranscribedtext: in

Answer both questions CoursHeroTranscribedText: In 20x1, Gorgeous Too Co. enters into a fixed-price construction contract...

70.2K

Verified Solution

Question

Accounting

Answer both questions

image
CoursHeroTranscribedText: In 20x1, Gorgeous Too Co. enters into a fixed-price construction contract with a customer. At contract inception, Gorgeous Too Co. assesses its performance obligations in the contract and concludes that it has a single performance obligation that is satisfied over time. Gorgeous Too Co. determines that the measure of progress that best depicts its performance on the contract is input method based on costs incurred. Information on the contract follows: 20x1 20x2 Cumulative contract costs incurred 2,250,000 4,800,000 Cumulative profits recognized 750,000 1,200.000 Progress billings 2,400,000 3,600,000 Collections on progress billings 2,000,000 4,000,000 The contract is completed in 20x2. 11. What amount of revenue is recognized in 20x2? a. 2,800,000 b. 3,000,000 C. 4,800,000 d. 6,000,000 12. How much is the transaction price in the contract? a. 5,000,000 b. 6.000,000 C. 7,000,000 d. 9,000,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students