28. On January 1, 2027, a contractor started a construction project for $1,350,000; estimated construction costs (total) were $1,050,000. Data for the two-year period: Actual construction costs during the year Estimated remaining costs to complete the contract Actual amount billed to the customer during the year Actual cash collected from the customer during the year 2027 2028 $600,000 $465,000 450,000 -0- 540,000 525,000 Based upon the above data, provide the following amounts for each method: (a) $600,000 - $540,000 $60,000 (b) $1,350,000 - $1,065,000 = $285,000 (c) ($1,350,000 - $1,050,000) × (600/1,050) = $171,429 (d) $285,000 - $171,429 = $113,571 810,000 825,000

28. On January 1, 2027, a contractor started a construction project for $1,350,000; estimated construction costs (total) were $1,050,000. Data for the two-year period: Actual construction costs during the year Estimated remaining costs to complete the contract Actual amount billed to the customer during the year Actual cash collected from the customer during the year 2027 2028 $600,000 $465,000 450,000 -0- 540,000 525,000 Based upon the above data, provide the following amounts for each method: (a) $600,000 - $540,000 $60,000 (b) $1,350,000 - $1,065,000 = $285,000 (c) ($1,350,000 - $1,050,000) × (600/1,050) = $171,429 (d) $285,000 - $171,429 = $113,571 810,000 825,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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