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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. Rustic's records showed the following data relating to the construction of an office building: Total contract awarded $92,700 Total estimated costs on the project $92,700 - $18,000 30% of contract 30% of contract 40% of contract Payments from the buyer on April 25th Payments from the buyer on June 17th Payments from the buyer on July 30th - Costs incurred on the project and billed for the month of April Costs incurred on the project and billed for the month of May Costs incurred on the project and billed for the month of June Project was completed at the end of month 3. = 40% of total 30% of total 30% of total Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $1 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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