A construction company entered into a fixed-price contract to build an office building for $30 million Construction costs incurred during the first year were $10 milion and estimated costs to complete at the end of the year were $15 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $11 million, of which $3 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 (L.e., 54 million should be entered as $4,000,000). Assets: Accounts receivable Balance Sheet (Partial)
A construction company entered into a fixed-price contract to build an office building for $30 million Construction costs incurred during the first year were $10 milion and estimated costs to complete at the end of the year were $15 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $11 million, of which $3 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 (L.e., 54 million should be entered as $4,000,000). Assets: Accounts receivable Balance Sheet (Partial)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee.98.
![briel Exercise 0-34 (Aigo) Long-term contract, revenue recognition over time, balance sheet L00-0, 0-9]
A construction company entered into a fixed-price contract to build an office building for $30 million. Construction costs incurred during the first year were $10 million,
and estimated costs to complete at the end of the year were $15 million. The company recognizes revenue over time according to percentage of completion
During the first year the company billed its customer $11 million, of which $3 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 (.e., 54 million should be entered as $4,000,000).
Balance Sheet (Partial)
Assets:
Accounts receivable
www](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff45f8a2a-f450-4d14-a99f-85887de7a617%2Fcfcfcbe7-2478-40d2-a2be-660c96716a17%2Fvchmks_processed.jpeg&w=3840&q=75)
Transcribed Image Text:briel Exercise 0-34 (Aigo) Long-term contract, revenue recognition over time, balance sheet L00-0, 0-9]
A construction company entered into a fixed-price contract to build an office building for $30 million. Construction costs incurred during the first year were $10 million,
and estimated costs to complete at the end of the year were $15 million. The company recognizes revenue over time according to percentage of completion
During the first year the company billed its customer $11 million, of which $3 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 (.e., 54 million should be entered as $4,000,000).
Balance Sheet (Partial)
Assets:
Accounts receivable
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