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The Leverenz Construction Company began work on a $12,000 contract on 1/1/26. Planned completion was in 2027. The Percentage-of-Completion method is used. Given the following:
The Leverenz Construction Company began work on a $12,000 contract on 1/1/26. Planned completion was in 2027. The Percentage-of-Completion method is used.
Given the following:
|
|
|
|
| 2026 |
| 2027 |
| Costs incurred to date |
|
|
| $4,000 |
| $11,100 |
| Estimated costs to complete |
|
|
| 6.000 |
| 0 |
| Billings to date |
|
|
| 5,800 |
| 12,000 |
| Collections to date |
|
|
| 5,500 |
| 12,000 |
2026 Net Income is: $800
2027 Net Income is: $100
The 12/31/26 balance sheet will show a net CIP/Billings amount of $__________
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