Oriole Construction enters into a contract with a customer t…

Oriole Construction enters into a contract with a customer to build a warehouse for $980000 on March 30, 2021 with a performance bonus of $40000 if the building is completed by July 31, 2021. The bonus is reduced by $8000 each week that completion is delayed. Oriole commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2021 70% August 7, 2021 20% August 14, 2021 5% August 21, 2021 5% The transaction price for this transaction is:

Mars Corporation uses the percentage-of-completion method. A…

Mars Corporation uses the percentage-of-completion method. At the end of the first year of a $9,000,000 contract, the following information is available: Costs to date: $2,000,000 Estimated costs to complete 6,000,000 Progress billings during the year 1,800,000 Cash collected during the year 1,500,000 At the end of first year, Mars’ balance sheet should report Construction in Progress account of: