Pensacola Building Co

question 40

Essay

Pensacola Building Co. signed a contract to build a road over a period of three years for a price of $600,000.
Information relating to the performance of the contract is summarized below:
Required:
a. Assuming Pensacola satisfies its performance obligation over time, show how Construction in Progress would be disclosed on the balance sheet at December 31, 2016.
b. Assuming Pensacola satisfies its performance obligation over time, prepare all 2017 entries.

---

Definitions:

Messages

Units of communication that convey information, thoughts, or ideas from one entity to another through various mediums.

Positive Words

Language that conveys optimism, encouragement, or affirmation, often used to influence mood or behavior positively.

Negative Words

Words that carry a negative connotation, often used to express criticism, pessimism, or disappointment.

Negotiators

Individuals or parties involved in discussions aimed at reaching an agreement or resolving a dispute.