Manama Construction Company had a contract starting April 2021, to construct a €24,000,000 building that is expected to be completed in September 2023. At the end of 2021, the costs to date were €10,120,000 and the estimated total costs to complete €11,880,000. The progress billings during 2021 were €4,800,000 and the cash collected during 2021 was €3,200,000. Manama uses the percentage-of-completion method. At December 31, 2021 Manama would report Balance of Billings and Construction in Process (inventory) of: A. € 6,240,000 OB. €10,120,000 OC. €11,040,000 OD. € 4,800,000

Manama Construction Company had a contract starting April 2021, to construct a €24,000,000 building that is expected to be completed in September 2023. At the end of 2021, the costs to date were €10,120,000 and the estimated total costs to complete €11,880,000. The progress billings during 2021 were €4,800,000 and the cash collected during 2021 was €3,200,000. Manama uses the percentage-of-completion method. At December 31, 2021 Manama would report Balance of Billings and Construction in Process (inventory) of: A. € 6,240,000 OB. €10,120,000 OC. €11,040,000 OD. € 4,800,000

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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