Question
During 2020, Martinez Corporation started a construction job with a contract price of $4.06 million. Martinez ran into severe technical difficulties during construction but managed
During 2020, Martinez Corporation started a construction job with a contract price of $4.06 million. Martinez ran into severe technical difficulties during construction but managed to complete the job in 2022. The contract is non-cancellable. Under the terms of the contract, Martinez sends billings as revenues are earned. Billings are non-refundable. The following information is available:
2020 | 2021 | 2022 | ||||
Costs incurred to date | $ 580,000 | $2,030,000 | $3,960,000 | |||
Estimated costs to complete | 3,045,000 | 2,030,000 | -0- |
Billings for the construction contract were as follows: 2020, $480,000; 2021, $1,950,000; and 2022, $1,630,000.
Calculate the balance of the Contract Asset/Liability account at the end of each year using the percentage-of-completion method. (Do not leave any answer field blank. Enter 0 for amounts.)
December 31, 2020 | December 31, 2021 | December 31, 2022 | ||||
Balance of the Contract Asset/Liability | $ | $ | $ |
Calculate the balance of the Contract Asset/Liability account at the end of each year using the zero-profit and completed-contract methods. (Do not leave any answer field blank. Enter 0 for amounts.)
December 31, 2020 | December 31, 2021 | December 31, 2022 | ||||
Balance of the Contract Asset/Liability | $ | $ | $ |
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