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Brief Exercise 6-34(Algo) Long-term contract; revenue recognition over time; balance sheet [LO6-8,6-9] A...

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Accounting

Brief Exercise 6-34(Algo) Long-term contract; revenue recognition over time; balance sheet [LO6-8,6-9]
A construction company entered into a fixed-price contract to build an office building for $42 million. Construction costs incurred during the first year were $12 million, and estimated costs to complete at the end of the year were $28 million. The company recognizes revenue over time according to percentage of completion.
During the first year the company billed its customer $11 million, of which $9 million was collected before year-end.
What would appear in the year-end balance sheet related to this contract?
Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000).
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