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Ben Construction accepted a three-year, $1,000,000 fixed-fee contract to renovate a parking deck. Kailey uses the percentage of completion method and the cost-to-cost method of
Ben Construction accepted a three-year, $1,000,000 fixed-fee contract to renovate a parking deck. Kailey uses the percentage of completion method and the cost-to-cost method of measuring progress. Information related to the construction contract follows:
2022 | 2023 | 2024 | |
Actual construction costs incurred during the year | $ 350,000 | $ 525,000 | $ 50,000 |
Construction costs incurred in prior years | 0 | 350,000 | 875,000 |
Cumulative construction costs incurred to date | 350,0000 | 875,000 | 925,000 |
Estimated costs to complete | 450,000 | 25,000 | 0 |
Estimated total costs | 800,000 | 900,000 | 925,000 |
Progress billings made during the year | 500,000 | 300,000 | 200,000 |
Cash collections during the year | 400,000 | 350,000 | 250,000 |
Required:
a. Prepare partial balance sheet for 2022 and 2023
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