073Q4 - Year 1 Year 2 Year 3 Costs Incurred in the $600...

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Name_ Zhi Pei _____________________4-Digit #_ 7688 _Section 14518 __ Accounting for Long-Term Construction Contracts: [ 073Q4] Acme Construction Company builds major projects around the world for the governments of those nations. The firm uses the percentage-of-completion method in the accounting for these projects. In Year 1, the firm contracted to build a new water desalinization plant in Dubai for $4,200 dollars [$1 = one million dollars]. The USC Company estimated that the plant would cost $3,800 to construct. Work on the project began in mid-Year 1. The project was not yet completed at the end of Year 3.
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Unformatted text preview: Year 1 Year 2 Year 3 Costs Incurred in the $600 2,200 800 year ended Dec. 31 Billed in the Year 400 1,400 2,000 ended Dec. 31 Collected in the Year ended Dec. 31 350 850 1,000 Estimated additional costs to complete the project as of Dec. 31 in each year 3,100 1,000 300 Revenues for the Year 681 2414 782 Expenses for the Year 600 2200 800 Balance in CIP account at Dec. 31 each year 681 3095 3877 Balance in Progress Billings at Dec. 31 of each year 400 1800 3200 Current Asset or (Current Liability) at Dec. 31 of each year CA 281 CA 1295 CA 677...
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