Question
I am trying to find the construction expense to date at the end of 2019. Here is the information for the question: On February 1,
I am trying to find the construction expense to date at the end of 2019. Here is the information for the question:
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,240,000. During 2018, costs of $2,080,000 were incurred with estimated costs of $4,080,000 yet to be incurred. Billings of $2,580,000 were sent, and cash collected was $2,330,000. In 2019, costs incurred were $2,580,000 with remaining costs estimated to be $3,720,000. 2019 billings were $2,830,000 and $2,555,000 cash was collected. The project was completed in 2020 after additional costs of $3,880,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.
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