On January 2, 2021, the Midwestern Steam Gas Corporation purchased industrial equipment. In payment, Midwestern signed a noninterest-bearing note requiring $40,000 to be paid on December 31, 2022 (two years later). If Midwestern had borrowed cash to buy the equipment, the bank would have required an interest rate of 8%. What is the cost of the equipment? $34,294 $36,935 $40,000 $35,383 Activate Windows Which of the following is not true about accounting for long-term construction contracts? When a customer is billed for payment due, billings on contracts in progress is credited at the same time accounts receivable is debited. Long-term construction contracts could show a contract asset or contract liability, depending on the relation between construction in progress and billings. Gross profit is debited to construction in progress. Billings on contracts in progress is a contra account to accounts receivable