Revenue $6164000 $5547600 $5295000 $5295000 O Option A O Option B O Option C Accounts Receivable $6164000 $1450000 $1450000 $6164000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Blossom Construction is constructing an office building under contract for Cannon
Company and uses the percentage-of-completion method. The contract calls for
progress billings and payments of $1450000 each quarter. The total contract price is
$18492000 and Blossom estimates total costs of $17650000. Blossom estimates that
the building will take 3 years to complete, and commences construction on January 2,
2018.
At December 31, 2018, Blossom estimates that it is 30% complete with the
construction, based on costs incurred. What is the total amount of Revenue from Long-
Term Contracts recognized for 2018 and what is the balance in the Accounts Receivable
account assuming Cannon Company has not yet made its last quarterly payment?
Revenue
$6164000
$5547600
$5295000
$5295000
O Option A
Option B
O Option C
Accounts Receivable
$6164000
$1450000
$1450000
$6164000
Transcribed Image Text:Blossom Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1450000 each quarter. The total contract price is $18492000 and Blossom estimates total costs of $17650000. Blossom estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. At December 31, 2018, Blossom estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue from Long- Term Contracts recognized for 2018 and what is the balance in the Accounts Receivable account assuming Cannon Company has not yet made its last quarterly payment? Revenue $6164000 $5547600 $5295000 $5295000 O Option A Option B O Option C Accounts Receivable $6164000 $1450000 $1450000 $6164000
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