The Hindenburg Corporation (SC) signed a $6 million contract in 20x1 to build an office...
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Accounting
The Hindenburg Corporation (SC) signed a $6 million contract in 20x1 to build an office tower. Data on the contract is as follows: 20x1 Costs incurred during year Expected costs to complete Billings 20x2 1,500,000 1,700,000 20x4 800,000 $1,600,000 3,400,000 2,500,000 20x3 1,400,000 900,000 3,500,000 Required - For each of the parts below, prepare the 'mini income statement for the project for each year and calculate the net investment of the project that will be shown on the balance sheet at the end of each year. b. SC uses an input based approach to calculating the percentage of completion. SC uses an output based approach to calculating the percentage of completion and has calculated the percentages of completion as follows: 20x1 - 30% 20x2 - 60% 20x3-85% 20x4 - 100%
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