MS Construction Company contacted to construct a factory buildingfor $525,000. Construction started during 2008 & was completedin 2009. Info relating to the contract follows:
|
2008 |
2009 |
| Costs incurredduring theyear |
290,000 |
150,000 |
| Estimatedadditional costs to complete |
145,000 |
-
|
| Billings duringthe year |
260,000 |
265,000 |
| Cash collectionsduring the year |
240,000 |
285,000 |
1. Record the preceding transations in MS's books under thecompleted contract & the percentage of completion methods.
2. Determine amounts that will be reported on the balance sheet atthe end of 2008.