In 2011, Johnson Builders Began Construction Work Under a Three-Year

question 25

Essay

In 2011, Johnson Builders began construction work under a three-year contract at a price of $7,525,000. The firm uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to the total estimated costs for completing the contract. The financial statement presentations relating to this contract on December 31, 2011, are:

Determine the

---

Definitions:

Frontal Lobes

Regions of the brain located at the front of each cerebral hemisphere, involved in reasoning, problem-solving, judgment, and impulse control.

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating voluntary movements, balance, and posture.

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to the appropriate areas of the brain.

Hippocampus

A part of the brain within the temporal lobe involved in memory formation, organization, and retrieval, as well as spatial navigation.