Question
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:
| Contract amount | $ | 2,910,000 | ||
| Cost: | 2017 | 1,180,000 | ||
| 2018 | 580,000 | |||
| Gross profit: | 2017 | 770,000 | ||
| 2018 | 380,000 | |||
| Contract billings: | 2017 | 1,455,000 | ||
| 2018 | 1,455,000 | |||
ADH recognizes revenue upon completion of the contract. In its December 31, 2017, balance sheet, ADH would report:
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Financial Accounting A Valuation Emphasis
Authors: John S. Hughes, Frances L. Ayres, Robert E. Hoskin
1st Edition
0471203599, 978-0471203599
