Refer to the situation described inBE 5-6. During the first year the company billed its customer $7

Question:

Refer to the situation described in BE 5-6. During the first year the company billed its customer $7 million of which $5 million was collected before year-end. What would appear in the year-end related to this contract?
In BE 5-6, A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. How much gross profit will the company recognize in the first year using the percentage-of-completion method? How much revenue will appear in the company's income statement?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...