Answered step by step
Verified Expert Solution
Question
1 Approved Answer
03 Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses full accrual accounting and prepares monthly financial
03 Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses full accrual accounting and prepares monthly financial statements. Rustic's records showed the following data relating to the construction of an office building: Total contract awarded $99,000 = Total estimated costs on the project $99,000 - $18,000 Payments from the buyer on April 25th -30% of contract Payments from the buyer on June 17th = 30% of contract Payments from the buyer on July 30th 40% of contract Costs incurred on the project and billed for the month of April Costs incurred on the project and billed for the month of May Costs incurred on the project and billed for the month of June Project was completed at the end of month 3. = = 40% of total = 30% of total 30% of total Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables on May 30th? $ Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables on June 30th? $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started