Camey Construction Enters into a Long-Term Fixed Price Contract to Build

question 50

Multiple Choice

Camey Construction enters into a long-term fixed price contract to build an office building for $6,000,000. In the first year of the contract Camey incurs $1,300,000 of cost and the engineers determined that the remaining costs to complete are $2,400,000. Camey billed $1,700,000 and collected $1,000,000 in Year 1. Refer to Camey Construction. What would be the journal entry in Year 1 to record revenue? (Do not round intermediary calculations, and round your final answer to the nearest whole dollar.)

• A) \(\begin{array}{lrr}
• \text {Accounts Receivable } &1,700,000\\
• \text { Revenue for Long-Term Contracts } &&1,700,000\\
• \end{array}\)
• B) \[\begin{array} { l r r }
• \text { Cost of Construction } & 1,300,000 \\
• \text { Construction in Progress } & 808,108 & \\
• \quad \text { Revenue for Long-Term Contracts } && 2,108,108
• \end{array}\]
• C) \[\begin{array} { l r r }
• \text { Cost of Construction } & 1,300,000 & \\
• \text { Construction in Progress } & 400,000 & \\
• \quad \text { Revenue for Long-Term Contracts } && 1,700,000
• \end{array}\]
• D) \[\begin{array} { l l l }
• \text { Cost of Construction } & 1,300,000 \\
• \text { Construction in Progress } & 1,000,000 & \\
• \quad \text { Revenue for Long-Term Contracts } & & 2,300,000
• \end{array}\]

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Definitions:

Skeletal Muscles

Voluntary muscles attached to the skeleton that contract to initiate movement in the body.

Glial Cells

Non-neuronal cells in the central and peripheral nervous systems that provide support and protection for neurons, play a role in synapse formation, and participate in signal transmission.

Sensory Receptors

Specialized cells or structures in the body that detect changes in the environment and send signals to the nervous system.

Temporal Codes

The timing patterns used in the nervous system to represent information.