A construction company is constructing an office building under contract for Codwell Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and the construction company estimates total costs of $17,750,000. They also estimate that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, the construction company 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 2021 and what is the balance in the Accounts Receivable account assuming Codwell Company has not yet made its last quarterly payment? Revenue Accounts Receivable Question 2 options: a $6,200,000 $6,200,000 b $5,325,000 $1,550,000 c $5,580,000 $1,550,000 d $5,325,000 $6,200,000

A construction company is constructing an office building under contract for Codwell Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and the construction company estimates total costs of $17,750,000. They also estimate that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, the construction company 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 2021 and what is the balance in the Accounts Receivable account assuming Codwell Company has not yet made its last quarterly payment? Revenue Accounts Receivable Question 2 options: a $6,200,000 $6,200,000 b $5,325,000 $1,550,000 c $5,580,000 $1,550,000 d $5,325,000 $6,200,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10C

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