Long construction corporation began construction

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In 2013, Long Construction Corporation began construction work under a three year contract. The contract price is $1,600,000. Long uses the percentage of completion method for financial reporting purposes. The financial statement presentation relating to this contract at December 31, 2013, is as follows:

Balance Sheet
Accounts receivable (from construction progress billings)..........$30,000
Construction in progress .........$100,000
Less: Billings on construction contract .. (94,000)
Cost of uncompleted contracts in excess of billings............6,000
Income StatementIncome (before tax) on the contract recognized in 2013.........$20,000

Required:
1. What was the cost of construction actually incurred in 2013?
2. How much cash was collected in 2013 on this contract?
3. What was the estimated cost to complete as of the end of 2013?
4. What was the estimated percentage of completion used to calculate income in 2013?

Reference no: EM13883111

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