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On February 1, 2020, a company agreed to construct a building at a contract price of $42,000. The company estimated the project would be finished
On February 1, 2020, a company agreed to construct a building at a contract price of $42,000. The company estimated the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows: 2020 2021 2022 Total costs incurred to date $8,000 $10,000 $22,000 Estimated costs to complete 12,000 6,000 -0- Customer billings to date 9,000 21,000 29,000 Collections to date 4,000 14,000 25,000 If the company uses the percentage-of-completion method, an inventory/current liability of $___________should be shown on the balance sheet at December 31, 2021 related to the project.
On February 1, 2020, a company agreed to construct a building at a contract price of $42,000. The company estimated the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:
2020 2021 2022
Total costs incurred to date $8,000 $10,000 $22,000
Estimated costs to complete 12,000 6,000 -0-
Customer billings to date 9,000 21,000 29,000
Collections to date 4,000 14,000 25,000
If the company uses the percentage-of-completion method, an inventory/current liability of $___________should be shown on the balance sheet at December 31, 2021 related to the project.
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
538476230, 978-0538476232
