Question
IT Technology enters into a contract with the federal government to create a system for...
IT Technology enters into a contract with the federal government to
create a system for the price of $ 16 million. IT receives $ 6.4
million when the contract is signed and the other $ 9.6 million
upon completion of the project. The government maintains control of
the system during the creation process. IT estimates that 37 comma
000 labor hours will be required to complete the product. During
the current year 11 comma 100 labor hours are used and during the
following year, the remaining 25 comma 900 hours were used. What
will be included in the journal entry at the end of the current
year? (Round any intermediary calculations to the nearest cent,
and round your final answer to the nearest dollar.)
Homework Answers
Answer #1
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