Sage Hill Inc. began work on a $10,700,000 non-cancellable contract in 2020 to construct an office building. During 2020, Sage Hill Inc. incurred costs of $1,352,000, billed its customers for $1,200,000 (non-refundable), and collected $910,000. At December 31, 2020, the estimated future costs to complete the project totalled $3,848,000.
Sage Hill Inc. began work on a $10,700,000 non-cancellable contract in 2020 to construct an office building. During 2020, Sage Hill Inc. incurred costs of $1,352,000, billed its customers for $1,200,000 (non-refundable), and collected $910,000. At December 31, 2020, the estimated future costs to complete the project totalled $3,848,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 10RE: Use the information in RE3-6, (a) assuming Ringo Company makes reversing entries, prepare the...
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Sage Hill Inc. began work on a $10,700,000 non-cancellable contract in 2020 to construct an office building. During 2020, Sage Hill Inc. incurred costs of $1,352,000, billed its customers for $1,200,000 (non-refundable), and collected $910,000. At December 31, 2020, the estimated future costs to complete the project totalled $3,848,000.
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