Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. use the following information for questions 86 thr

Use the following information for questions 86 through 88. Gorman Construction Co. began operations in...

60.1K

Verified Solution

Question

Accounting

Use the following information for questions 86 through 88.

Gorman Construction Co. began operations in 2010. Construction activity for 2010 is shown below. Gorman uses the completed-contract method.

Billings Collections Estimated

Contract Through Through Costs to Costs to

Contract Price 12/31/10 12/31/10 12/31/10 Complete

1 $3,200,000 $3,150,000 $2,600,000 $2,150,000

2 3,600,000 1,500,000 1,000,000 820,000 $1,880,000

3 3,300,000 1,900,000 1,800,000 2,250,000 1,200,000

88. Which of the following should be shown on the balance sheet at December 31, 2010 related to Contract 3?

a. Inventory, $200,000

b. Inventory, $350,000

c. Inventory, $2,100,000

d. Inventory, $2,250,000

Answer is A

**Can someone explain why?**

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

A computer aided drafting (CAD) instructor at a community college wants to use his rapid prototype...

Psychology
1.2K views

Relate Kolberg's stages of moral development (and its critiques), to our discussion of developing a pragmatic...

Advance Math
1.2K views

Let p be an odd prime (i.e., any prime other than 2). Form two vector spaces...

Physics
1.2K views

Equivalent resistance between A and B in the circuit shown is 1 3 8R 15...

Physics
1.2K views

A heat engine operates between a high temperature reservoir at 610 K and a low...

Basic Math
1.2K views

De Select one a O tan x More on Trigonometric Functions Question 9 tan x...

Calculus
1.2K views

A magnitude of 700 pounds of force is required to hold a boat and its...

Algebra
1.2K views

Find the domain of f(x) =?x+7/x-2Using interval notation.

Accounting
1.2K views

Two plans for financing a $20,000,000 expansion are under consideration. Under each of the following...

Accounting
1.2K views

After liquidating noncash assets and paying creditors, account balances in the Pharoah C 8,000; B,...

Accounting
1.2K views

Brief Exercise 7-3 Kingbird Co. uses the net method to account for cash discounts. On...

Accounting
1.2K views

answer question 1-5 chart are posted below ...