Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / In 2014 Steinrotter Construction Corp. began construction work under a 3-year contract The...

In 2014 Steinrotter Construction Corp. began construction work under a 3-year contract The contract price was $3100000 Steinrotter uses the percentage

In 2014, Steinrotter Construction Corp. began construction work under a 3-year contract. The contract price was $3,100,000. Steinrotter uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2014, are shown below.Balance SheetAccounts receivable$55,800Construction in process201,500Less: Billings190,650Costs and recognized profit in excess of billings10,850 Income StatementIncome (before tax) on the contract recognized in 2014$60,450How much cash was collected in 2014 on this contract?What was the initial estimated total income before tax on this contract?

Apr 04 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions