QUESTION 15construction finance GS construction is awarded a

QUESTION 15-construction finance:

GS construction is awarded a contract to build a commercial building. The contract price is $1,500,000 and during the first month of the job, the following transactions occurred:

Cash expenditures to date

$300,000

Total expenditures to date

$350,000

Estimated expenditure to complete

$1,100,000

Total estimated expenditures

$1,450,000

Billing to date

$280,000

Cash collected to date

$250,000

What is \"Revenue to Date\" in Cash Method?

50,000

250,000

280,000

300,000

Solution

Revenue to Date = Total expenditures to date - Cash expenditures to date

= $350,000 - $300,000

= $50,000