Question. Prepare a partial balance sheet to indicate how the above contract information would be reported. Ayayai uses the completed-contract method.
Transcribed Image Text:Ayayai Construction, Inc. experienced the following construction activity in 2021, the first
year of operations.
Contract
X
Y
N
Total
Contract
Price
$254,000
323,00
229,000
Billings
Through
12/31/21
$161,000
112,000
229,000
Cash
Collections
Through
12/31/21
$148,000
108,000
192,000
Costs
Incurred
Through
12/31/21
$174,000
100,000
158,000
Estimated
Additional
Costs to
Complete
$ 56,000
252,000
-0-
$806,000 $502,000
$448,000
$432,000
$308,000
Each of the above contracts is with a different customer, and any work remaining at
December 31, 2021 is expected to be completed in 2022.
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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