ADH constructed a new subdivision during 2012 and 2013 under contract with Cactu

Question

ADH constructed a new subdivision during 2012 and 2013 under contract with Cactus Development Co. Relevant data are summarized below: ADH uses the completed contract method to recognize revenue. For 2012, what is the journal entry to record revenue? Accounts receivable 1,500,000 Revenue for long-term contracts 1,500,000 Accounts receivable 2.300.000 Gross profit 800.000 Revenue for long-term contracts 1.500.000 Construction in progress 800.000 Cost of construction 1, 200.000 Revenue for long-term contracts 2,000.000

Explanation / Answer

The correct option is C. Debit Construction in Progress $ 800,000, Debit Cost of construction $ 1,200,000 Credit Revenue from long-term contracts $ 2,000,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.