Use the Following Information for Questions

question 20

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, 2010, 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 2010 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:

Annually Balanced Budget

A budgeting approach where the government's projected revenues and expenditures are equal within a one-year period.

Countercyclical

Economic policies or measures intended to mitigate the effects of recessions by stimulating economic activity during downturns.

Destabilize

To cause a system, government, or structure to become unstable, potentially leading to disorder, chaos, or downfall.

Unemployment Rate

A measure of those in the labor force who are without employment and are searching for a job.