What portion of the total contract price would be recognized

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Question- ?Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2017, Hamilton began work under contract A01, which provided for a contract price of $2,000,000. Other details follow:

 

2017

2018

Costs incurred during the year

$600,000

?$1,000,000

Estimated costs to complete, as of December 31

960,000

-0-

Billings to date

? ???? 900,000

2,000,000

Collections during the year????

750,000

1,250,000

Required -

(a) What portion of the total contract price would be recognized as revenue in 2017? In 2018?

(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2017?

Reference no: EM132990263

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