Annabello Co. which is a publicly traded company started to build a 20-story Condo building in May
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Question:
Annabello Co. which is a publicly traded company started to build a 20-story Condo building in May 2018. The project will take 5 years to finish, and the total contract price is $80,000,000. The following table provides information about the cost and revenue of the contract
2018 | 2019 | 2020 | 2021 | 2022 | |
Costs incurred during the year | $15,400,000 | $14,000,000 | $29,000,000 | $10,000,000 | $4,000,000 |
Estimated costs to complete the project | 45,000,000 | 38,5000,000 | 22,000,000 | 8,000,000 | 0 |
Billings | 15,000,000 | 16,000,000 | 20,000,000 | 19,000,000 | 10,000,000 |
A) Assume the company uses the percentage of completion method based on input, calculate and record the revenue and profit for each year.
B) Determine how this contract will be presented in the balance sheets of 2019
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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