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Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses full accrual accounting and prepares monthly financial statements.
Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses full accrual accounting and prepares monthly financial statements. Rustics records showed the following data relating to the construction of an office building:
Total contract awarded $95,600Total estimated costs on the project $95,600 - $18,000Payments from the buyer on April 25th = 30% of contractPayments from the buyer on June 17th = 30% of contractPayments from the buyer on July 30th = 40% of contractCosts incurred on the project and billed for the month of April = 40% of totalCosts incurred on the project and billed for the month of May = 30% of totalCosts incurred on the project and billed for the month of June = 30% of totalProject was completed at the end of month 3.
Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $
Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables on May 30th? $
Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables on June 30th? $
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