Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed 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's records showed the following data relating to the construction of an office building: Total contract awarded $95,300 Total estimated costs on the project $95,300 - $18,000 Payments from the buyer on April 25th =30% of contract Payments from the buyer on June 17 th =30% of contract Payments from the buyer on July 30 th =40% of contract Costs incurred on the project and billed for the month of April =40% of total Costs incurred on the project and billed for the month of May =30% of total Costs incurred on the project and billed for the month of June =30% of total Project 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? \$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Analysis Microsoft Excel 2010

Authors: Conrad Carlberg

1st Edition

0789747200, 9780789747204

More Books

Students also viewed these Accounting questions