Exercises and Problems (Connect) Help Save & Exit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 7 In 2021, Long Construction Corporation began construction work under a three-year contract. The contract price is $1,700,000 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, 2021, is as follows: Balance Sheet Accounts receivable (from construction progress billings) Construction in progress Less: Billings on construction contract Cost and profit of uncompleted contracts in excess of billings Income Statement Income (before tax) on the contract recognized in 2021 Required: 1. What was the cost of construction actually incurred in 2021? 2. How much cash was collected in 2021 on this contract? $ 110,000 (107,000) Answer is complete but not entirely correct. $21,000 $31,000 3,000 3. What was the estimated cost to complete as of the end of 2021? 4. What was the estimated percentage of completion used to calculate revenue in 2021? (Round your percentage answer to 2 decimal places.) Submit Return to question Shet 16.57 PM Shot 32.58 PM Shot 56.51PM Shot 00.03 PM Shat 00:13 PM Shet 00.17 PM 1. 2. Required: 1. What was the cost of construction actually incurred in 2021? 2. How much cash was collected in 2021 on this contract? 3. What was the estimated cost to complete as of the end of 2021? 4. What was the estimated percentage of completion used to calculate revenue in 2021? (Round your percentage answer to 2 decimal places.) 3. Income Statement Income (before tax) on the contract recognized in 2021 4. Answer is complete but not entirely correct. Actual costs incurred in 2021 Cash collections in 2021 Estimated cost to complete Estimated percentage $ $ $ 89,000 76,000 1,375,454 $21,000 6.47 %
