25. R&R Construction Limited supplies for April 2024 was: • Construction services $500,000 (exempt VAT activity) • Electrical services $2,000,000 • Surveying services $300,000 • Export services$700,000 The VAT rate is 15% Material for construction work - $15,000 Material for electrical services - $52,500 Material for surveying services - $ 22,500 Purchase of staff uniform $4,950 The Net VAT Payable a. 250,050 b. 270,000 c. 325,050 d. 430,050

25. R&R Construction Limited supplies for April 2024 was: • Construction services $500,000 (exempt VAT activity) • Electrical services $2,000,000 • Surveying services $300,000 • Export services$700,000 The VAT rate is 15% Material for construction work - $15,000 Material for electrical services - $52,500 Material for surveying services - $ 22,500 Purchase of staff uniform $4,950 The Net VAT Payable a. 250,050 b. 270,000 c. 325,050 d. 430,050

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 316,000 $ 1,700,000 Estimated costs to complete as of 12/31 1,264,000 0 Billings during the year 400,000 1,660,000 Cash collections during the year 290,000 1,770,000 Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time.
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