Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,375,000. Construction activities are summarized below by year: Costs incurred during the year Estimated cost to complete Required: 1. Prepare the journal entries for revenue recognition for each year. 2. Calculate the gross margin for each year on the contract. 20X2 1,700,000 3,400,000 20X3 1,785,000 3,017,500 20X4 3,060,000 0

Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,375,000. Construction activities are summarized below by year: Costs incurred during the year Estimated cost to complete Required: 1. Prepare the journal entries for revenue recognition for each year. 2. Calculate the gross margin for each year on the contract. 20X2 1,700,000 3,400,000 20X3 1,785,000 3,017,500 20X4 3,060,000 0

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 18RE

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