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Question - UMUC contracted to build a new hotel for $800,000 that will take 3 years to complete. The following information pertains to the contract. UMUC uses the percentage-of-completion method in accounting for long-term contracts.
Required:
1. Prepare all the related journal entries for 2013 and 2014.
2. Prepare a partial balance sheet for 2013 and 2014, IN GOOD FORM, for UMUC as it relates to the contract activity.
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