shophearts Job Description Clous Bing ahoe Google Wpeds Facebook Twitter Lnked H
ID: 2557295 • Letter: S
Question
shophearts Job Description Clous Bing ahoe Google Wpeds Facebook Twitter Lnked Help Save&Eit; Submi Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relievant data are summarized below 3,450,000 20171,300,000 2018 700,000 950,000 2018 500,000 Contract billings: 2017 1,725,000 2018 1,725,000 Contract amount Costi Gross profit: 2017 ADH recognizes revenue upon completion of the contract In its December 31, 2017, balance sheet, ADH would report Multiple Choice MacBook Air 5 6 3Explanation / Answer
Answer is Contract liability in excess of cost $425,000
Explanations:
Under-recognition upon completion method, the profits will only be recognized on completion of the contract. therefore, revenue will be recognized for cost incurred only i.e. $1300,000 and Billings made in excess of revenue of $425,000 (i.e. $1725,000-1300,000) will be recognized as liability.
revenue recoa
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