P18-3 (Recognition of Profit and Entries on Long-Term Contract) On March 1, 2010, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to the construction period: 2010 2011 2012Costs to date: $600,000 $1,560,000 $2,100,000Estimated costs to complete: 1,400,000 520,000 OProgress billing to date: 1,050,000 2,000,000 3,000,000Cash collected to date: 950,000 1,950,000 2,850,000 Instructions (c) Prepare a partial balance sheet for December 31, 2011, showing the balances in the receivables and inventory accounts.

P18-3 (Recognition of Profit and Entries on Long-Term Contract) On March 1, 2010, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to the construction period: 2010 2011 2012Costs to date: $600,000 $1,560,000 $2,100,000Estimated costs to complete: 1,400,000 520,000 OProgress billing to date: 1,050,000 2,000,000 3,000,000Cash collected to date: 950,000 1,950,000 2,850,000 Instructions (c) Prepare a partial balance sheet for December 31, 2011, showing the balances in the receivables and inventory accounts.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 40P

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