In 2023, Sheridan Contractors began construction on an office building. The building was expected to cost $45,510,000 in total and was expected to be completed in early 2025. The customer was to pay Sheridan $48,560,000 for the building. Sheridan was able to use percentage-of-completion accounting for the project, and at the end of 2023 had accumulated $11,377,500 in cost. Sheridan estimated that the costs to complete the construction were in line with the original expected total costs. During 2024, there was a lumber shortage, a strike by construction workers, and various other incidents that dramatically raised costs in the construction industry. As a result, at the end of 2024, Sheridan estimated that the office building would cost an additional $4,990,000 more than originally estimated. To the end of 2024, Sheridan had spent $38,380,000 on constructing the office building. (a1) Your answer is correct. Calculate the revenue to be recognized by Sheridan for the 2024 fiscal year. Revenue to be recognized $ 24765600

In 2023, Sheridan Contractors began construction on an office building. The building was expected to cost $45,510,000 in total and was expected to be completed in early 2025. The customer was to pay Sheridan $48,560,000 for the building. Sheridan was able to use percentage-of-completion accounting for the project, and at the end of 2023 had accumulated $11,377,500 in cost. Sheridan estimated that the costs to complete the construction were in line with the original expected total costs. During 2024, there was a lumber shortage, a strike by construction workers, and various other incidents that dramatically raised costs in the construction industry. As a result, at the end of 2024, Sheridan estimated that the office building would cost an additional $4,990,000 more than originally estimated. To the end of 2024, Sheridan had spent $38,380,000 on constructing the office building. (a1) Your answer is correct. Calculate the revenue to be recognized by Sheridan for the 2024 fiscal year. Revenue to be recognized $ 24765600

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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