Exercise 6-24 (Algo) Long-term contract; revenue recognition over time; solve for unknowns [LO6-9]

In 2021, Long Construction Corporation began construction work under a three-year contract. The contract price is $2,900,000. 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)					$	43,000
Construction in progress	$	240,000
Less: Billings on construction contract		(233,000	)
Cost and profit of uncompleted contracts in excess of billings						7,000

Income Statement
Income (before tax) on the contract recognized in 2021	$	33,000

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.)

1. Actual costs incurred in 2021 2. Cash collections in 2021 3. Estimated cost to complete 4. Estimated percentage %