Recognition of Revenue on Long-Term Contract and Entries Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2010, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow:
.PNG)
(a) What portion of the total contract price would be recognized as revenue in 2010? In 2011?
(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 2011?
(c) Prepare a complete set of journal entries for 2010 (using the percentage-of-completion method).