A construction company entered into a fixed-price contract to build an office building for $36 million. Construction costs incurred during the first year were $9 million, and estimated costs to complete at the end of the year were $21 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $9 million, of which $6 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (Le., $4 million should be entered as $4,000,000). Assets Balance Sheet (Partial)

A construction company entered into a fixed-price contract to build an office building for $36 million. Construction costs incurred during the first year were $9 million, and estimated costs to complete at the end of the year were $21 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $9 million, of which $6 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (Le., $4 million should be entered as $4,000,000). Assets Balance Sheet (Partial)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 34E

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