How much loss should larson have recognized


Larson Construction, Inc. has consistently used the percentage-of-completion method of recognizing income. During 2004, Larson started work on a $3,000,000 fixed price construction contract. the accounting records disclosed the following data for the year ended December 31, 2004:

  • Cost incurred $930,000
  • Estimated remaining costs to complete $2,170,000
  • Progress billing $1,100,000
  • Collections $700,000
  • How much loss should Larson have recognized in 2004?

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Accounting Basics: How much loss should larson have recognized
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