Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It...

  

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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's records showed the following data relating to the construction of an office building: Total contract awarded $96,000 Total estimated costs on the project $96,000 - $18,000 Payments from the buyer on April 25th 30% of contract Payments from the buyer on June 17th = 30% of contract Payments from the buyer on July 30th = 40% of contract 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? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables on May 30th? S Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables on June 30th? 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 $96,000 Total estimated costs on the project $96,000 - $18,000 Payments from the buyer on April 25th 30% of contract Payments from the buyer on June 17th = 30% of contract Payments from the buyer on July 30th = 40% of contract 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? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables on May 30th? S Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables on June 30th?

Answer rating: 100% (QA)

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