Question
Question 21 of 30. Ava Limited., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.8 million beginning September 1,
Question 21 of 30.
Ava Limited., which has a calendar year end, has entered into a non-cancellable fixed-price contract for $2.8 million beginning September 1, 2015, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2017. The following data pertain to the construction period.
| 2015 | 2016 | 2017 | |
| Costs to date | $867,000
| $1,804,800
| $2,346,000 |
| Estimated costs to complete | 1,683,000
| 1,015,200
| 0 |
| Progress billings to date (non-refundable) | 921,000
| 2,296,000
| 2,800,000
|
| Cash collected to date | 767,000
| 2,177,000
| 2,800,000
|
(a)
Using the percentage-of-completion method, calculate the percentage complete for 2015 and 2016. (Round answers to 2 decimal places, e.g. 61.75%.)
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Financial Accounting
Authors: Strayer University
1st Edition
0470603526, 978-0470603529
