Camey Construction Enters into a Long-Term Fixed Price Contract to Build

Multiple Choice

Camey Construction enters into a long-term fixed price contract to build an office building for $6,000,000. In the first year of the contract Camey incurs $1,300,000 of cost and the engineers determined that the remaining costs to complete are $2,400,000. Camey billed $1,700,000 and collected $1,000,000 in Year 1. Refer to Camey Construction. What would be the journal entry in Year 1 to record revenue? (Do not round intermediary calculations, and round your final answer to the nearest whole dollar.)

A) $\begin{array}{lrr} \text {Accounts Receivable } &1,700,000\\ \text { Revenue for Long-Term Contracts } &&1,700,000\\\end{array}$

B) $$\begin{array} { l r r } \text { Cost of Construction } & 1,300,000 \\\text { Construction in Progress } & 808,108 & \\\quad \text { Revenue for Long-Term Contracts } && 2,108,108\end{array}$$
C) $$\begin{array} { l r r } \text { Cost of Construction } & 1,300,000 & \\\text { Construction in Progress } & 400,000 & \\\quad \text { Revenue for Long-Term Contracts } && 1,700,000\end{array}$$
D) $$\begin{array} { l l l } \text { Cost of Construction } & 1,300,000 \\\text { Construction in Progress } & 1,000,000 & \\\quad \text { Revenue for Long-Term Contracts } & & 2,300,000\end{array}$$