The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion wasin 2024. The Percentage-of Completion method is used.Given the following at 12/31/22:Costs incurred to dateEstimated costs to completeBillings to dateCollections to datoDecember 31, 2022$2,5009,5004,0003,800The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are:Select one:a. Current Liability of $1,500O b. Current Liability of $200O c. Current Asset of $1,500d. Current Liability of $875

The correct answer is d. Current Liability of $875

The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to date December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are:

The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to date December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are:

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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