Seasons Construction is constructing an office building under contract for Canno

Question

Seasons Construction is constructing an office building under contract for Cannon Cafe. The contract calls for progress billings and payment of $620,000 each quarter. The total contract price is $7,440,000 and Seasons estimates total costs of $7,100,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2010. At December 31, 2010, Season estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue from Long-term contracts recognized for 2010 and what is the balance in the Accounts Receivable account assuming Cannon Cafe has not yet made its last quarterly payment?
2,232,000/620,000
2,130,000/2,480,000
2,480,000/2,480,000
2,130,000/620,000

Explanation / Answer

2,130,000/620,000

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