How much was recorded as revenue from long-term contracts in 2022 by Hardhat Construction Company?

To determine the revenue recorded from long-term contracts by Hardhat Construction Company in 2022, it is essential to consider the context of revenue recognition principles, particularly those that apply to long-term contracts, such as the percentage-of-completion method. This method recognizes revenue as a project progresses rather than when the project is fully completed.

In this case, the value of 1,260,000 likely reflects the cumulative revenue that aligns with the work completed during the year on these contracts. This figure would have been derived from detailed records of contract performance, costs incurred, and progress assessments relative to the estimated total revenue from these contracts.

Using established accounting principles, it is clear that 1,260,000 represents a correctly recognized revenue figure for the given time period, affirming that Hardhat Construction Company effectively recorded its financial activities according to industry standards. This amount showcases how the company measured its accomplishments in fulfilling contracted work, which is a vital aspect of financial accounting for construction projects.