Syco Company signed a long-term contract in 20x1 to build a hydroelectric plant for the Iowa...
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Syco Company signed a long-term contract in 20x1 to build a hydroelectric plant for the Iowa Power Company for $110,000,000. Syco initially estimated cost to be $90,000,000. Cost incurred each year and estimated cost to complete at the end of each year are as follows: Cost incurred during the year 20x1 $30,000,000 20x2 Estimated cost to complete at year end $60,000,000 33,000,0000 27,000,000 Assume that 25% of the contract price is billed each year. Determine the amount reported in the balance sheet for Construction in Progress net of accumulated billings at 12/31/20x1. Syco Company signed a long-term contract in 20x1 to build a hydroelectric plant for the Iowa Power Company for $110,000,000. Syco initially estimated cost to be $90,000,000. Cost incurred each year and estimated cost to complete at the end of each year are as follows: Cost incurred during the year 20x1 $30,000,000 20x2 Estimated cost to complete at year end $60,000,000 33,000,0000 27,000,000 Assume that 25% of the contract price is billed each year. Determine the amount reported in the balance sheet for Construction in Progress net of accumulated billings at 12/31/20x1.
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