In 2014,Amsterdam Builders began construction work under a three-year contract at a price of $7,525,000.The firm 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 the total estimated costs for completing the contract.The financial statement presentations relating to this contract on December 31,2014,are:

Determine the
(1)cash collected in 2014.
(2)estimated income on the construction contract.

Question

In 2014,Amsterdam Builders began construction work under a three-year contract at a price of $7,525,000.The firm 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 the total estimated costs for completing the contract.The financial statement presentations relating to this contract on December 31,2014,are:
  
Determine the
(1)cash collected in 2014.
(2)estimated income on the construction contract.

Quizplus · Accepted Answer

The Answer of In 2014,Amsterdam Builders began construction work under a three-year contract at a price of $7,525,000.The firm 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 the total estimated costs for completing the contract.The financial statement presentations relating to this contract on December 31,2014,are:
  
Determine the
(1)cash collected in 2014.
(2)estimated income on the construction contract.

In 2014,Amsterdam Builders Began Construction Work Under a Three-Year Contract