A Construction Firm Enters a Long-Term Contract to Build a Bridge.The

Short Answer

A construction firm enters a long-term contract to build a bridge.The expected and actual cash receipts and disbursements for the project are as follows:
$\begin{array}{lll}\text { Period } & \text { Receipts } &\text { Expenditures }\\1 & \$ 1,000 & \$ 4,000 \\2 & 2,000 & 2,000 \\3 & 3,000 & 1,000 \\4 & 4,000 & 1,000\end{array}$ Required:
What is the revenue during each of the following periods under each of the specified methods of revenue recognition?
$\begin{array} { l }\text { Mehod }&\text { Period }\\ \text { Completed Contract }&1&a.\\ \text { Completed Contract }&4&b.\\ \text { Percentage of Completion }&1&c.\\ \text {Percentage of Completion }&4&d.\\ \text {Installment method }&1&e.\\ \text {Installment Method }&4&f.\\ \text { Cost Recovery First }&1&g.\\ \text {Cost Recovery First }&4&h.\\\end{array}$