15. In 20x1, Espresso Co. started work on a long-term construction contract. Espresso Co. accumulates costs...

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15. In 20x1, Espresso Co. started work on a long-term construction contract. Espresso Co. accumulates costs and recognized profits using the "Construction in progress" account. Information on the contract is as follows: 20x1 20x2 Accounts receivable, ending balances Costs incurred each year Construction in progress, ending balances Progress billings, cumulative balances 250,000 750,000 262,500 480,000 305,000 910,000 250,000 1,050,000 Espresso bills the customer based on the project's stage of completion, which is computed using the costs incurred. How much are the profit, revenue and total collections in 20x2, respectively? a. 125,000; 605,000; 300,000 b. 149,000; 640,000; 326,000 c. 50,000; 242,000; 120,000 d. 150,000; 620,000; 300,000 15. In 20x1, Espresso Co. started work on a long-term construction contract. Espresso Co. accumulates costs and recognized profits using the "Construction in progress" account. Information on the contract is as follows: 20x1 20x2 Accounts receivable, ending balances Costs incurred each year Construction in progress, ending balances Progress billings, cumulative balances 250,000 750,000 262,500 480,000 305,000 910,000 250,000 1,050,000 Espresso bills the customer based on the project's stage of completion, which is computed using the costs incurred. How much are the profit, revenue and total collections in 20x2, respectively? a. 125,000; 605,000; 300,000 b. 149,000; 640,000; 326,000 c. 50,000; 242,000; 120,000 d. 150,000; 620,000; 300,000

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Working Hence the correct option is a 125000605000300000 Revenue 20x2 Construction ... View the full answer