A company was contracted to build a tunnel on 1st Jan 2011 and prepared accounts on 31st December each year. Total contr

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answerhappygod
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A company was contracted to build a tunnel on 1st Jan 2011 and prepared accounts on 31st December each year. Total contr

Post by answerhappygod »

A company was contracted to build a tunnel on 1st Jan
2011 and prepared accounts on 31st
December each year.
Total contract revenue £200,000
Total contract costs £80,000
Actual contract costs incurred (Year 1) £50,000
Progress billings £60,000
Costs actually incurred £31,000
Showing full working, calculate the contract account
(asset/liability) balance for the year.
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