Question
In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One). The contract price is $420 million. KP recognizes revenue on
In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One). The contract price is $420 million. KP recognizes revenue on this contract over time according to percentage of completion. At the end of 2024, the following financial statement information indicates the results to date for Cincy One:
INCOME STATEMENT:
Gross profit (before-taxes) recognized in 2024
BALANCE SHEET: Accounts receivable from construction billings
Construction in progress
Less: Billings on construction
$ 37 million
$ 25 million
$84 million $ (90 million)
Net billings in excess of construction in progress
$ 6 million
Required:
Compute the following, placing your answer in the spaces provided and showing supporting computations below. Note: Round your percentage answer to the nearest whole number. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Cash collected by KP on Cincy One during 2024
$
Actual costs incurred by KP on Cincy One during 2024
$
65 million
47 million
At 12/31/2024, the estimated remaining costs to complete Cincy One
The percentage of Cincy One that was completed during 2024
million
96
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Audit And Accounting Guide Employee Benefit Plans
Authors: American Institute Of Certified Public Accountants
1st Edition
0870515756, 978-0870515750
