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How much cash was collected in 2025 on this contract? Portion of contract billings collected (b) eTextbook and Media Save for Later $ What was the initial estimated total income before tax on this contract?

How much cash was collected in 2025 on this contract? Portion of contract billings collected (b) eTextbook and Media Save for Later $ What was the initial estimated total income before tax on this contract?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2025, Carla Vista Construction Corp. began construction work under a 3-year contract. The contract price was $1,100,000. Carla Vista 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, 2025, are shown below. Accounts receivable Construction in process Balance Sheet Less: Billings Costs and recognized profit in excess of billings Income Statement $64,000 62,400 Income (before tax) on the contract recognized in 2025 $17,400 1,600 $16,640
Transcribed Image Text:In 2025, Carla Vista Construction Corp. began construction work under a 3-year contract. The contract price was $1,100,000. Carla Vista 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, 2025, are shown below. Accounts receivable Construction in process Balance Sheet Less: Billings Costs and recognized profit in excess of billings Income Statement $64,000 62,400 Income (before tax) on the contract recognized in 2025 $17,400 1,600 $16,640
(a) How much cash was collected in 2025 on this contract? Portion of contract billings collected eTextbook and Media Save for Later What was the initial estimated total income before tax on this contract? Income before tax on this contract $ eTextbook and Media Save for Later $ Type here to search 3. Attempts: 0 of 2 used Submit Answer Attempts: 0 of 2 used Submit Answer ms: 7,070 W
Transcribed Image Text:(a) How much cash was collected in 2025 on this contract? Portion of contract billings collected eTextbook and Media Save for Later What was the initial estimated total income before tax on this contract? Income before tax on this contract $ eTextbook and Media Save for Later $ Type here to search 3. Attempts: 0 of 2 used Submit Answer Attempts: 0 of 2 used Submit Answer ms: 7,070 W
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