Question
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below:
| 2024 | 2025 | |
|---|---|---|
| Costs incurred during the year | $ 376,000 | $ 2,265,000 |
| Estimated costs to complete as of 12/31 | 1,504,000 | 0 |
| Billings during the year | 535,000 | 1,810,000 |
| Cash collections during the year | 500,000 | 1,845,000 |
Question: Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time.
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
