Use the Following Information for Questions

question 38

Short Answer

Use the following information for questions.The contract calls for progress billings and payments 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, 2011, Seasons Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $7,200,000 due to unanticipated price increases.What is reported in the statement of financial position at December 31, 2011 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:

Military-Industrial Complex

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GI Bill

A law passed in 1944 that provided a range of benefits for returning World War II veterans, including educational grants, home loan guarantees, and unemployment compensation.