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  3. a construction company entered into a fixed-price

A construction company entered into a fixed-price contract to build an office building for $20...

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Accounting

A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million, and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion.
During the first year the company billed its customer $7 million, of which $5 million was collected before year-end.
What would appear in the year-end balance sheet related to this contract?

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