In 2011,Huxley Corp.began construction work under a three-year contract.The contract price is $800,000.Huxley used the percentage-of-completion method for financial accounting purposes.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial presentations relating to this contract at December 31,2014,appear below. How much cash was collected in 2014 on this contract?
A) $32,000
B) $35,000
C) $47,000
D) $50,000

Question

In 2011,Huxley Corp.began construction work under a three-year contract.The contract price is $800,000.Huxley used the percentage-of-completion method for financial accounting purposes.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial presentations relating to this contract at December 31,2014,appear below.  How much cash was collected in 2014 on this contract?
A) $32,000 
B) $35,000 
C) $47,000 
D) $50,000

Quizplus · Accepted Answer

The Answer of In 2011,Huxley Corp.began construction work under a three-year contract.The contract price is $800,000.Huxley used the percentage-of-completion method for financial accounting purposes.The income to be recognized each year is based on the proportion of costs incurred to total estimated costs for completing the contract.The financial presentations relating to this contract at December 31,2014,appear below.  How much cash was collected in 2014 on this contract?
A) $32,000 
B) $35,000 
C) $47,000 
D) $50,000