Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2024, long construction corporation began const

In 2024, Long Construction Corporation began construction work under a three-year contract. The contract price...

90.2K

Verified Solution

Question

Accounting

In 2024, Long Construction Corporation began construction work under a three-year contract. The contract price is $2,300,000. Long recognizes revenue over time according to percentage of completion for financial reporting purposes. The financial statement presentation relating to this contract at December 31, 2024, is as follows:

Balance Sheet
Accounts receivable (from construction progress billings) $ 37,000
Construction in progress $150,000
Less: Billings on construction contract (141,000)
Cost and profit of uncompleted contracts in excess of billings 9,000
Income Statement
Income (before tax) on the contract recognized in 2024 $ 27,000

Required:

  1. What was the cost of construction actually incurred in 2024?
  2. How much cash was collected in 2024 on this contract?
  3. What was the estimated cost to complete as of the end of 2024?
  4. What was the estimated percentage of completion used to calculate revenue in 2024?
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

Medical Sciences
1.2K views

Acute Respiratory Distress Syndrome - what are some of the causes for this disorder? -what happens? (first...

Biology
1.2K views

Which of these describes acquired immunity? A. the binding of antigen and antibody triggering a...

Biology
1.2K views

An error during DNA replication caused one base pair to be substituted for another in...

Biology
1.2K views

Which of the following component(s) belongs to the second line of defenseThe tough cell sheet...

Biology
1.2K views

For each of the following indicate whether the condition will cause the membrane potential to...

Physics
1.2K views

A toy car is moving on a circular path of radius 10 m on an...

Physics
1.2K views

Example 65 Round off the following numbers as indicated 1 18 35 upto 3 digits...

Basic Math
1.2K views

Write in standard form.y = 4(x + 2)(x-3)A) y = 4x - 24C) y =...

Statistics
1.2K views

2 For each of the following hypothetical populations give a plausible sample of size 4...

Accounting
1.2K views

Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory,...

Accounting
1.2K views

Required information Skip to question [The following information applies to the questions displayed...

Accounting
1.2K views

Problem 13-24A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 Required Calculate the following ratios...