Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:
Contract amount $3,405,000
Cost: 2017 1,290,000
2018 690,000
Gross profit: 2017 935,000
2018 490,000
Contract billings: 2017 1,702,500
2018 1,702,500
ADH recognizes revenue upon completion of the contract. In its December 31, 2017, balance sheet, ADH would report:
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Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Ca...
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