Blue Construction Corp. began operations in 2023. Construction activity for 2023 is shown below. Blue uses the completed-contractmethod.Contract123ContractPrice$128800014434001321000BillingsThrough12/31/23$1270000601000787000CollectionsThrough12/31/23$1045000402000722000Costs to12/31/23$880000329000current liability contract asset/liability, $94000current asset contract asset/liability, $49000current asset contract asset/liability, $143000O accounts receivable, $787000930000EstimatedCosts toComplete$758000485000Which of the following should be shown on the statement of financial position at December 31, 2023 related to Contract 3?

It is a method used for accounting for construction contracts. In this approach, revenue is…

Answered: Which of the following should be shown…

Which of the following should be shown on the statement of financial position at December 31, 2023 related to Contract 3?

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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Question

Blue Construction Corp. began operations in 2023. Construction activity for 2023 is shown below. Blue uses the completed-contract
method.
Contract
1
2
3
Contract
Price
$1288000
1443400
1321000
Billings
Through
12/31/23
$1270000
601000
787000
Collections
Through
12/31/23
$1045000
402000
722000
Costs to
12/31/23
$880000
329000
current liability contract asset/liability, $94000
current asset contract asset/liability, $49000
current asset contract asset/liability, $143000
O accounts receivable, $787000
930000
Estimated
Costs to
Complete
$758000
485000
Which of the following should be shown on the statement of financial position at December 31, 2023 related to Contract 3?

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