nformation for 22 to 26. In 2012 Norcraft Sisters Construction agreed to construct a residence hall at University of Houston at a price of $1,200,000. The information relating to the costs and billings for this contract is shown below. 2012 2013 2014 Costs incurred during the year $ 280,000 $320,000 $850,000 Estimated costs to complete 520,000 300,000 0 Customer billings to date 300,000 400,000 850,000 Collection of billings to date 200,000 320,000 800,000

23. Assuming that the percentage-of-completion method is used, which of the following is reported on the balance sheet at Dec. 31, 2012? - i know the answer is $120000, but i want to know why.

*also, why do you add the "costs incurred during the YEAR" for 2013 and 2014

* lastly, can you show me the journal entries for year 2013-2014