4. In 2011, KP Building Inc. began work on a four-year construction project (called “Cincy One”). The contract price is $300 million. KP uses the percentage-of-completion method of accounting. At the end of 2011, the following financial statement information indicates the results to date for Cincy One:
INCOME STATEMENT Gross Profit (before-taxes) recognized in 2011 $22 million BALANCE SHEET Accounts Receivable from construction billings $10 million Construction in progress $66 million Less: Billings on construction ($75 million) Net billings in excess of construction in progress $9 million
Required: Compute the following, placing your answer in the spaces provided and showing supporting computations: Items to compute: Cash collected by KP on Cincy One during 2011 Actual costs incurred by KP on Cincy One during 2011 At 12/31/2011, the estimated remaining costs to complete Cincy One The percentage of Cincy One that was completed during 2011
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.