Acc421 Intermediate Accounting I: Week 2 Q5 - In 2012, Steinrotter Construction Corp. began

Acc421 Intermediate Accounting I
WileyPLUS Assignment Week 2

Question 5
In 2012, Steinrotter Construction Corp. began construction work under a 3-year contract. The contract price was $957,400. Steinrotter uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of costs incurrect to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2012, are shown below.
Balance sheet
Accounts receivable - contruction contract billings 15,900
Construction in process 68,400
Less: Contract billings 54,900
Cost of uncompleted contract in excess of billings 13,500

Income Statement
Income (before tax) on the contract recognized in 2012 17,100

a. How much cash was collected in 2012 on this contract?
b. What was the initial estimated total income before tax on this contract?
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