What would be the initial entry to record construction costs

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Problem

Little River Corporation contracts with a customer to construct an apartment building. It determines it has one performance obligation that is satisfied over time. The following information is for Year 1: Year 1 (of 3-year project) Construction costs incurred during the year $150,000 Estimated costs to complete the project 470,000 Partial billings to customers 75,000 Collections from customers 15,000 Total contract price 1,000,000. Get the instant assignment help. What would be the initial entry to record the construction costs?

Reference no: EM133900785

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