Question: Seasons Construction is constructing an office building under contract for Cannon Cafe. The contract calls for progress billings and payment of $620,000 each quarter. The

Seasons Construction is constructing an office building under contract for Cannon Cafe. The contract calls for progress billings and payment of $620,000 each quarter. The total contract price is $7,440,000 and Seasons estimates total costs of $7,100,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2010. At December 31, 2010, Season estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue from Long-term contracts recognized for 2010 and what is the balance in the Accounts Receivable account assuming Cannon Cafe has not yet made its last quarterly payment? 2,232,000/620,000 2,130,000/2,480,000 2,480,000/2,480,000 2,130,000/620,000

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