I also need the solution nerformance obligation but expects to recover all contractcosts incurred (i.e., ignore the 'estimated costs to complete').Noquirements:Compute for the gross profits, revernues and costs ofconstruction in 20x1, 20x2 and 20x3, respectively.Provide the journal entries under (i) traditional accountingb.and (ii) PFRS 15.Determine the amounts presented in the financial statements.C.PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL1. In 20x1, Johnny Co. enters into a contract to build a house forBravo Co. for a fixed contract price of P4,500,000. At contractinception, Johnny Co. assesses its performance obligations inthe contract and concludes that it has a single performanceobligation that is satisfied over time. Johnny Co. determinesthat the measure of progress that best depicts its performancein the contract is the inputs method based on costs incurred.At the end of 20x1, Johnny Co.'s records show the following: 340Chapter 7Progress billingsCosts incurred1,650,0001,350,000Collections1,050,000Estimated costs to complete2,700,000How much is the revenue and profit recognized in Arespectively?a. 1,500,0003; 150,000b. 1,580,0003; 230,000c. 1,470,000; 120,000d. 1,420,000; 70,0002.

Fixed contract price = 4,500,000 Cost incurred = 1,350,000 Estimated cost to complete = 2,700,000

340 Chapter7 Progress billings Costs incurred 1,650,000 1,350,000 1,050,000 2,700,000 Collections Estimated costs to complete How much is the revenue and profit recognized in respectively? a. 1,500,000; 150,000 b. 1,580,0003; 230,000 c. 1,470,000; 120,000 d. 1,420,000; 70,000 2.

340 Chapter7 Progress billings Costs incurred 1,650,000 1,350,000 1,050,000 2,700,000 Collections Estimated costs to complete How much is the revenue and profit recognized in respectively? a. 1,500,000; 150,000 b. 1,580,0003; 230,000 c. 1,470,000; 120,000 d. 1,420,000; 70,000 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: For the second question, were you able to show how that problem would be worked out?

A: The par value is stated in the corporate charter and the company cannot issue shares below the par…

Q: Important Factors to Consider When Building a TCO Model Example of a TCO Model?

A: TCO model or Total Cost Ownership Model is an model used to estimate the cost of product or a…

Q: Going beyond just calculating NPV, discuss it qualitatively. What is it used for? Is it a good…

A: Net present value is defined as the difference between the PV of the cash inflows as well as present…

Q: Explain “gain contingency”.

A: MEANING OF GAIN CONTINGENCY:- A gain contingency is an uncertain situation that will be resolved in…

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: What is the project’s PI?

A: The PI index the profitability index of the project. The shows the profitability of the project…

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: What are the steps to figure this out?

A: Journal: Recording of a business transactions in a chronological order.

Q: Explain the benefits of supply-chain analysis.

A: In supply chain analysis, every stage of a supply chain that includes the purchase of raw material,…

Q: How would I complete this problem fully by hand?

A: Data given: Loan amount is $15,000 Nominal interest rate is 11% n= 1 year

Q: Discuss the different variables of CAPM. What are the benefits and limitations of the CAPM?

Q: A project's terminal value is the ______.

A: A project's terminal value is the sum of the future values of the cash inflows compounded at the…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: What would be the equasion for solving this

A: Formula for calculating yearly payment: Yearly payment=(Loan amount * Rate%)1-1(1+Rate%)n

Q: When is a New AIS is needed?

A: AIS is accounting information system is a whole information system which provides information about…

Q: I need help trying to figure out where these go.

A: Petty Cash is the small sum of money maintained by the organisation seperate from Cash to meet small…

Q: What is the concept behind the EOQ model?

A: Economic Order Quantity (EOQ) Model: It is a method of inventory costing that aims to identify the…

Q: Explain FLSA and its purpose.

A: FLSA stands for fair Labor Standards Act. It is an act that aims at protecting the interest of…

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: how to learn CAPM model?

A: In order to increase the return and reduce the risk, investors generally adding some securities to…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

I also need the solution

nerformance obligation but expects to recover all contract
costs incurred (i.e., ignore the 'estimated costs to complete').
Noquirements:
Compute for the gross profits, revernues and costs of
construction in 20x1, 20x2 and 20x3, respectively.
Provide the journal entries under (i) traditional accounting
b.
and (ii) PFRS 15.
Determine the amounts presented in the financial statements.
C.
PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL
1. In 20x1, Johnny Co. enters into a contract to build a house for
Bravo Co. for a fixed contract price of P4,500,000. At contract
inception, Johnny Co. assesses its performance obligations in
the contract and concludes that it has a single performance
obligation that is satisfied over time. Johnny Co. determines
that the measure of progress that best depicts its performance
in the contract is the inputs method based on costs incurred.
At the end of 20x1, Johnny Co.'s records show the following:

340
Chapter 7
Progress billings
Costs incurred
1,650,000
1,350,000
Collections
1,050,000
Estimated costs to complete
2,700,000
How much is the revenue and profit recognized in A
respectively?
a. 1,500,0003; 150,000
b. 1,580,0003; 230,000
c. 1,470,000; 120,000
d. 1,420,000; 70,000
2.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the Baumol model, and how is it used?
Where did you find the formlulas for this solution?
How can thepayback method be useful?
explain two ways mangers can increase roi