Alert Construction Company had a contract starting April 2021, to construct a $15,000,000 building that is expected to be completed in September 2022, at an estimated cost of $13,750,000. At the end of 2021, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3,000,000 and the cash collected during 2021 was $2,000,000. Alert uses the percentage-of-completion method. What amount would Alert report for Construction in Process at December 31, 2021?
Alert Construction Company had a contract starting April 2021, to construct a $15,000,000 building that is expected to be completed in September 2022, at an estimated cost of $13,750,000. At the end of 2021, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3,000,000 and the cash collected during 2021 was $2,000,000. Alert uses the percentage-of-completion method. What amount would Alert report for Construction in Process at December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alert Construction Company had a contract starting April 2021, to construct a $15,000,000 building that is expected to be completed in September 2022, at an estimated cost of $13,750,000. At the end of 2021, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3,000,000 and the cash collected during 2021 was $2,000,000. Alert uses the percentage-of-completion method.
What amount would Alert report for Construction in Process at December 31, 2021?
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