Use the Following Information for Questions 65-68

question 16

Short Answer

Use the following information for questions 65-68:
Seasons Construction is constructing an office building under contract for Cannon Company. The contract calls for progress billings and payments of $1,240,000 each quarter. The total contract price is $14,880,000 and Seasons estimates total costs of $14,200,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2014.
-At December 31, 2014, Seasons 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 2014 and what is the balance in the Accounts Receivable account assuming Cannon Cafe has not yet made its last quarterly payment?

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Definitions:

Income Tax

A tax levied by a government directly on individuals' or organizations' income.

Percentage Calculation

Percentage calculation involves determining the part of a whole in terms of 100, used in various financial and statistical contexts to express proportions.

Percentage Calculation

The mathematical process of determining the percentage amount or the percentage change between two numbers.

Percentage Calculation

The mathematical process of finding a portion of a number, represented as a fraction of 100.