You have a contract for $200,000. The following events occur: ● March 1 – the project starts • March 20 - The subcontractors bill for $80,000 to the contractor • Between March 1 and March 31 - 45% of the contract was completed • April 10 - The subcontractor was paid $80,000 • April 20 - The subcontractors billed $100,000 to the contractor • Between April 1 and April 30 - 55% of the contract was completed • April 30 - the project ends and the contractor billed the owner in full. • May 10 - The contractor paid $100,000 to the sub-contractors. • May 20 - the owner paid the contractor $200,000 Determine when revenues and expenses are recognized on the accrual method? Fill in the relevant financial activities below. Revenues Expenses March $ $ April $ May $
You have a contract for $200,000. The following events occur: ● March 1 – the project starts • March 20 - The subcontractors bill for $80,000 to the contractor • Between March 1 and March 31 - 45% of the contract was completed • April 10 - The subcontractor was paid $80,000 • April 20 - The subcontractors billed $100,000 to the contractor • Between April 1 and April 30 - 55% of the contract was completed • April 30 - the project ends and the contractor billed the owner in full. • May 10 - The contractor paid $100,000 to the sub-contractors. • May 20 - the owner paid the contractor $200,000 Determine when revenues and expenses are recognized on the accrual method? Fill in the relevant financial activities below. Revenues Expenses March $ $ April $ May $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You have a contract for $200,000. The following events occur:
• March 1 - the project starts
• March 20- The subcontractors bill for $80,000 to the contractor
• Between March 1 and March 31 - 45% of the contract was completed
• April 10 - The subcontractor was paid $80,000
• April 20 - The subcontractors billed $100,000 to the contractor
• Between April 1 and April 30 - 55% of the contract was completed
• April 30 - the project ends and the contractor billed the owner in full.
• May 10 - The contractor paid $100,000 to the sub-contractors.
● May 20 - the owner paid the contractor $200,000
Determine when revenues and expenses are recognized on the accrual method? Fill in the relevant
financial activities below.
Revenues
Expenses
March
$
April
$
$
May
$
LA
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