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Answer all three of the following problems: Wind and Water Energy Company hired Smith Construction Corporation to build a new
3.) Arial Company had the following transactions in the first year of its operations. A. On January 10, 2005, the company iss
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Answer #1

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Costs incurred to date 400000
Estimated additional costs to complete 550000
Estimated total costs ($400000 + $550000) 950000
Percentage of completion ($400000/$950000) 42%
Revenue recognized during the year (42% x $1200000) 504000
Less: Costs incurred during the year 400000
Gross profit for the year 104000

Note: The percentage of completion has been rounded off to the nearest whole number in the absence of specific instructions regarding the same. Kindly round off as required. Answers may vary slightly due to different rounding off.

Per HOMEWORKLIB RULES the first question has been answered. Please post each of the remaining independent questions separately. Thank you.

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