Based on the project data presented in the table, what is the amount of overbilling and underbilling for the candy store, toy store, and ice rink? The revenue is based from the percentage-of-completion method. Projectfinancial dataCandy storeprojectToy storeprojectIce rinkprojectContract amount$5,000,000* $5,000,000$5,000,000Original estimated cost4,700,0004,800,0004,850,000Billed to date1,700,0001,700,0001,700,000Payments received to date1,530,0001,530,0001,530,000Cost incurred to date1,450,0001,350,0001,550,000Forecasted cost to complete3,500,0003,400,0003,100,000Costs paid to date1,400,0001,400,0001,400,000

The percentage of completion method is useful when a construction spans over multiple years and the…

Based on the project data presented in the table, what is the amount of overbilling and underbilling for the candy store, toy store, and ice rink? The revenue is based from the percentage-of-completion method.

Based on the project data presented in the table, what is the amount of overbilling and underbilling for the candy store, toy store, and ice rink? The revenue is based from the percentage-of-completion method.

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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Question

100%

Project
financial data
Candy store
project
Toy store
project
Ice rink
project
Contract amount
$5,000,000
* $5,000,000
$5,000,000
Original estimated cost
4,700,000
4,800,000
4,850,000
Billed to date
1,700,000
1,700,000
1,700,000
Payments received to date
1,530,000
1,530,000
1,530,000
Cost incurred to date
1,450,000
1,350,000
1,550,000
Forecasted cost to complete
3,500,000
3,400,000
3,100,000
Costs paid to date
1,400,000
1,400,000
1,400,000

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