Homework Help is Here – Start Your Trial Now!
Business
Accounting
Brief Exercise 6-34 (Algo) Long-term contract; revenue recognition over time; balance sheet [LO6-8, 6-9] A construction company entered into a fixed-price contract to build an office building for $24 million. Construction costs incurred during the first year were $7 million, and estimated costs to complete at the end of the year were $13 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $7 million, of which $5 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000). Balance Sheet (Partial) Assets: Accounts receivable Costs plus profit in excess of billings

Brief Exercise 6-34 (Algo) Long-term contract; revenue recognition over time; balance sheet [LO6-8, 6-9] A construction company entered into a fixed-price contract to build an office building for $24 million. Construction costs incurred during the first year were $7 million, and estimated costs to complete at the end of the year were $13 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $7 million, of which $5 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000). Balance Sheet (Partial) Assets: Accounts receivable Costs plus profit in excess of billings

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Alpesh 

Brief Exercise 6-34 (Algo) Long-term contract; revenue recognition over time; balance sheet [LO6-8, 6-9] A construction company entered into a fixed-price contract to build an office building for $24 million. Construction costs incurred during the first year were $7 million, and estimated costs to complete at the end of the year were $13 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $7 million, of which $5 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000). Balance Sheet (Partial) Assets: Accounts receivable Costs plus profit in excess of billings
Transcribed Image Text:Brief Exercise 6-34 (Algo) Long-term contract; revenue recognition over time; balance sheet [LO6-8, 6-9] A construction company entered into a fixed-price contract to build an office building for $24 million. Construction costs incurred during the first year were $7 million, and estimated costs to complete at the end of the year were $13 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $7 million, of which $5 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000). Balance Sheet (Partial) Assets: Accounts receivable Costs plus profit in excess of billings
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS