Newton Corp. has a contract to construct a $5,000,000 cruise ship at an estimated cost of $4,000,000. The company began construction of the cruise ship in early January 2021 and expects to complete the project sometime in late 2024. Newton Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances, Newton Corp. believes there are inherent hazards in the contract beyond the normal, recurring business risks. Newton Corp. expects to recover all its costs under the contract. During 2021 and 2022, the company has the following activity: 2021 2022 Costs to date $ 980,000 $2,040,000 Estimated costs to complete 3,020,000 1,960,000 Progress billings during the year 1,000,000 1,000,000 Cash collected during the year 648,000 1,280,000 Calculate the amount will be reported for accounts receivable on the statement of financial position at December 31, 2022.
Newton Corp. has a contract to construct a $5,000,000 cruise ship at an estimated cost of $4,000,000. The company began construction of the cruise ship in early January 2021 and expects to complete the project sometime in late 2024. Newton Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances, Newton Corp. believes there are inherent hazards in the contract beyond the normal, recurring business risks. Newton Corp. expects to recover all its costs under the contract. During 2021 and 2022, the company has the following activity:
2021 2022
Costs to date $ 980,000 $2,040,000
Estimated costs to complete 3,020,000 1,960,000
Progress billings during the year 1,000,000 1,000,000
Cash collected during the year 648,000 1,280,000
Calculate the amount will be reported for
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