Sable Construction entered into a contract beginning on January 1, 2020, to construct an office building for a customer.
Posted: Wed May 04, 2022 4:32 pm
Sable Construction entered into a contract beginning on January
1, 2020, to construct an office building for a customer. The sale
price of the building was set at $500,000. Sable estimated the
building would cost $400,000 to complete, and the project would e
completed in three years. The project was completed on December 31,
2022, at which time the building was transferred to the buyer. The
following information is available for the entire construction
project:
2020
2021
2022
Cost incurred to
date
$ 150,000 $
300,000
$ 480,000
Estimated cost to
complete $
200,000 $
120,000
$ -0-
Progress billings to
date
$ 250,000 $
350,000
$ 500,000
Collections to
date
$ 175,000 $
325,000
$ 500,000
REQUIRED:
1, 2020, to construct an office building for a customer. The sale
price of the building was set at $500,000. Sable estimated the
building would cost $400,000 to complete, and the project would e
completed in three years. The project was completed on December 31,
2022, at which time the building was transferred to the buyer. The
following information is available for the entire construction
project:
2020
2021
2022
Cost incurred to
date
$ 150,000 $
300,000
$ 480,000
Estimated cost to
complete $
200,000 $
120,000
$ -0-
Progress billings to
date
$ 250,000 $
350,000
$ 500,000
Collections to
date
$ 175,000 $
325,000
$ 500,000
REQUIRED: