Use the Following Information for Questions 65-68

question 53

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, 2015, Seasons Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $14,400,000 due to unanticipated price increases. What is reported in the balance sheet at December 31, 2015 for Seasons as the difference between the Construction in Process and the Billings on Construction in Process accounts, and is it a debit or a credit?

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Definitions:

Object Relations

A theory in psychoanalysis focusing on relationships with others, particularly how early experiences with caregivers influence adult relationships and emotional development.

Psychotherapist

A professional trained to diagnose and treat mental health issues through various forms of therapy.

Freudian

Pertaining to or involving the theories and ideas of Sigmund Freud, especially regarding the unconscious, psychosexual stages, and the structure of personality.

Neo-Freudian

Refers to psychologists who followed Freud but developed their own theories, often emphasizing social and cultural factors over sexual ones.