In early 2024, Beertender Company entered into a long term contract to construct a bridge for Notsosober County for $10 million. The bridge will take three years to complete. In 2024, Beertender spent $2.8 million on the project, recognized $3.5 million in revenue and $0.7 million in profit. In 2025, Beertender spent $4.2 million on the project, recognized $3.8 million in revenue and a $0.4 million loss. Beertender billed Notsosober $3.0 million in 2024 and $4.5 million in 2025. Notsosober paid
In early 2024, Beertender Company entered into a long term contract to construct a
bridge for Notsosober County for $10 million. The bridge will take three years to
complete. In 2024, Beertender spent $2.8 million on the project, recognized $3.5
million in revenue and $0.7 million in profit. In 2025, Beertender spent $4.2 million on
the project, recognized $3.8 million in revenue and a $0.4 million loss. Beertender
billed Notsosober $3.0 million in 2024 and $4.5 million in 2025. Notsosober paid
Beertender $2.6 million in 2024 and $4.3 million in 2025. Beertender Company
recognizes revenue on all contracts over time by using the cost to cost ratio.
1. When preparing its December 31, 2024
following with regards to this contract:
Current Assets of $3.9 million, and Current Liabilities of $3.0 million.
Current Assets of $6.5 million, and no Current Liabilities.
Current Assets of $3.9 million, and no Current Liabilities.
Current Assets of $0.9 million, and no Current Liabilities.
2. When preparing its December 31, 2025 balance sheet, Beertender would report the
following with regards to this contract:
Current Assets of $7.9 million, and Current Liabilities of $7.5 million.
Current Assets of $0.6 million, and Current Liabilities of $0.2 million.
Current Assets of $7.3 million, and Current Liabilities of $7.5 million.
Current Assets of $0.4 million, and no Current Liabilities.
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