Ask Question
BusinessBusiness
16 March, 08:54

Carla Vista Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1300000 each quarter. The total contract price is $18330000 and Carla Vista estimates total costs of $17500000. Carla Vista estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, Carla Vista 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 2021 and what is the balance in the Accounts Receivable account assuming Cannon Company has not yet made its last quarterly payment

+5
Answers (1)
  1. 16 March, 12:40
    0
    Total amount of Revenue, 2021 = $5499000

    Balance in the Accounts Receivable account = $5250000

    Explanation:

    Given

    Progress billings and payments = $1300000

    Total contract price = $18330000

    Estimated total costs = $17500000.

    Time = 3 years

    Estimated Completion = 30%

    Calculating the total amount of Revenue from Long-Term Contracts recognized for 2021

    Total amount of Revenue, 2021 = Total contract revenue * % Completed during the year

    Total = $18330000 * 30%

    Total = $5499000

    Calculating the balance in the Accounts Receivable account

    Balance = New Estimate of Costs expected * % Completed during the year

    Balance = $17500000 * 30%

    Balance = $5250000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Carla Vista Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
You can save $3,000 per year for the next five years in an account earning 8 percent per year. how much will you have at the end of the fifth year if you make the first deposit today? (do not round intermediate calculations.
Answers (1)
Darla had $750 in her checking account when her debit card was stolen. assuming the thief made $525 in purchases with the card, how much could she save by reporting the stolen atm card immediately rather than waiting more than three months before
Answers (1)
The normal distribution curve is also called the bell curve.
Answers (1)
Which is the single largest source of tax revenue for the state of texas?
Answers (1)
What is the value of a 10 percent annual coupon, $1,000 par value bond with 20 years to maturity if the required rate of return on the bond is 12 percent?
Answers (1)
New Questions in Business
Pirate Corporation acquired 85 percent of Ship Company's voting shares of stock in 20X7. During 20X8, Pirate purchased 50,000 circuit boards for $15 each and sold 28,000 of them to Ship for $20 each.
Answers (1)
The term of an invoice of $2800 were 2/10, 1/30, n/60. The buyer sent a part payment of $980 within 10 days and the balance due 15 days later. How much cash discount could be taken?
Answers (1)
Baxter company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring, and finishing. when the sets are completely finished, out of which account should the cost be transferred?
Answers (1)
Who is responsible for first mass producing cars on the assembly line in world war 1?
Answers (1)
What would you call a object that makes people shut up
Answers (1)
Home » Business » Carla Vista Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1300000 each quarter.
Sign Up Forgot Password?