Determining the amount of gain-loss


Wells corporation uses the percentage of completion method of accounting for construction costs. for construction project a, wells had previously recognized revenue of $250,000 out of a total of $800,000 for the project. During the current year, the company accumulated the following information about this project:

*construction costs incurred for the year, $92,000

*construction costs incurred to date (including this year's costs), $200,000

*estimated costs to complete, $300,000

Based on the previous information, prepare a schedule to determine the amount of loss that Wells Corporation should recognize for the current year.

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Accounting Basics: Determining the amount of gain-loss
Reference No:- TGS046917

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