40. Silvanna has a contract starting January 1, 2021 to construct a Supermarket that is expected tobe completed in December 2023. The total contract price is P30,000,000. The following datapertaining to the construction are as follows:202120222023Cost incurred to date10,000,00021,500,00075%28,000,000Percentage of completion35%100%Silvanna used the percentage of completion method.The gross income to be recognized in 2021 isa. 500,000b. 1,000,000c. 1,500,000d. 2,000,00041. Basedon the data given in No. 40, the gross income in 2022 is:a. 500,000b. 1,000,000c. 1,500,000d. 2,000,00042. Basedon the data given in No. 40, the gross income in 2023 is:a. 500,000b. 1,000,000c. 1,500,000d. 2,000,000

Income will be recognised on the basis of percentage of work completed in the given contract. Detail…

40. Silvanna has a contract starting January 1, 2021 to construct a Supermarket that is expected to be completed in December 2023. The total contract price is P30,000,000. The following data pertaining to the construction are as follows: 2021 2022 2023 Cost incurred to date 10,000,000 21,500,000 28,000,000 Percentage of completion 35% 75% 100% Silvanna used the percentage of completion method. The gross income to be recognized in 2021 is a. 500,000 b. 1,000,000 c. 1,500,000 d. 2,000,000 41. Basedon the data given in No. 40, the gross income in 2022 is: a. 500,000 b. 1,000,000 c. 1,500,000 d. 2,000,000 42. Basedon the data given in No. 40, the gross income in 2023 is: a. 500,000 b. 1,000,000 c. 1,500,000 d. 2.000.000

40. Silvanna has a contract starting January 1, 2021 to construct a Supermarket that is expected to be completed in December 2023. The total contract price is P30,000,000. The following data pertaining to the construction are as follows: 2021 2022 2023 Cost incurred to date 10,000,000 21,500,000 28,000,000 Percentage of completion 35% 75% 100% Silvanna used the percentage of completion method. The gross income to be recognized in 2021 is a. 500,000 b. 1,000,000 c. 1,500,000 d. 2,000,000 41. Basedon the data given in No. 40, the gross income in 2022 is: a. 500,000 b. 1,000,000 c. 1,500,000 d. 2,000,000 42. Basedon the data given in No. 40, the gross income in 2023 is: a. 500,000 b. 1,000,000 c. 1,500,000 d. 2.000.000

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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7
The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to date December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are: Select one: O a. Current Liability of $1,500 O b. Current Liability of $200 c. Current Asset of $1,500 d. Current Liability of $875
Chung Corp. thought of constructing their own building for P40,000,000 which they plan to start and finish until December 31, 2021. Chung made the following payments, based on the construction contract, during 2021.· January 31- P5,000,000· February 28- P8,000,000· July 1- P15,000,000· August 31- P10,000,000· November 30- P2,000,000Chung secured a 10%, 4-year noted dated January 1, 2021, specifically intended for the construction. The amount was P20,000,000.Also, the entity had other debts outstanding as follows:· 8%, 6-year note dated December 31, 2019- P18,000,000· 12%, 7-year noted dated December 31, 2018 - P22,000,000 What is the total cost of the building constructed?
Karan
On February 1, 2023, Sandhill Contractors agreed to construct a building at a contract price of $3,460,000. The total estimated construction costs would be $1,890,000 and the project would be finished in 2025. Information relating to the costs and billings for this contract is as follows: Total costs incurred to date Estimated costs to complete Customer billings to date Collections to date 2023 Gross profit/ (loss) 689,850 1,200,150 1,100,000 1,000,000 2023 2024 573050 $1,162,000 $ 2,365,000 913,000 1,890,000 1,750,000 2025 Calculate the gross profit / (loss) that should be recognized for 2023, 2024, and 2025 using the percentage completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentage complete to 1 decimal place, e.g. 15.2% and final answers to O decimal places, e.g. 5,125.) 2024 -0- 3,460,000 2,950,000 -107450 $ LA 2025 40450
Celestial Holdings Co. began constructing a condominium in January 1, 2017 for a contract price of P1,250,000. The entity has assured collection of its contract and the costs can be reliably estimated. For the year ended December 31, 2018, Celestial billed its client an additional 60% of the contract price. Data relating to the construction are as follows: 2017 2018 2019 Construction in progress 300,000 ? ? Estimated cost to complete ? ? - Cost incurred 250,00 600,000 112,500 Excess of CIP over PB 25,000 (125,000) How much is the Gross Profit/Loss Realized in 2018? Show your good accounting form. Thank you!
1. Prepare a schedule showing the revenue, cost and gross profit earned each year using thepercentage of completion method, using the engineer’s estimate as a measure ofcompletion.2. Prepare all journal entries required to reflect the contract3. Prepare journal entries for 2020 assuming zero profit method is used.
8. How much is the Gross Profit/Loss Realized in 2018? * Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project 2017 2018 2019 Costs inenered to dnte Estimsted cost to complete Progess Billings to dnte Cash Collectiona for the year 2160,000 4,500,000 7,520,000 6840,000 5,500,000 1,690, 000 2,304,000 4,320,000 7,680,000 1,728.000 3,240,000 5,760,000 9. How much is the Gross Profit/Loss Realized in 2019? * Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 10,200,000 10,200,000 9,800,000 8,760,000…
Problem on long-term construction Axcel Construction Company has consistently used the percentage of completion method of recognizing income. During 2020, Axcel entered into a fixed price contract to construct an office building for P10,000,000. Information relating to the contract is as follows: 12/31/2020 12/31/2021 Percentage of completion 25% 65% Estimated total cost at completion-- P7,500,000.00 P 8,000,000.00 Income recognized (cumulative) 500,000.00 1,200,000.00 Required: a. Cost incurred to date, 12/31/2020 b. Cost incurred to date, 12/31/2021 Contract costs incurred during 2021| C.
36 Construction is constructing an office building under contract for Election Cafe. The contract calls for progress billings and payments of P620,000 each quarter. The total contract price is P7,440,000 and RegisterToVote estimates total costs of P7,100,000. RegisterToVote estimates that the building will take 3 years to complete, and commences construction on January 2, 2020. 36 At December 31, 2020, RegisterToVote estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue from Long-Term Contracts recognized for 2020 and what is the balance in the Accounts Receivable account assuming Election Cafe has not yet made its last quarterly payment? Revenue - 2,232,000 ; AR - 620,000 Revenue - 2,130,000 ; AR - 620,000 Revenue - 2,130,000 ; AR - 2,480,000 Revenue - 2,480,000 ; AR - 2,480,000 37At December 31, 2021, RegisterToVote Construction estimates that it is 75% complete with the building; however, the estimate of total costs…
How much is the gross profit realized in 2018? A. (P250,000) B. (P50,000) C. P250,000 D. P1,100,000
How much is the Gross Profit/Loss Realized in 2018? Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project: 2017 2018 2019 Costs incurred to date 2160,000 4,500,000 7,520,000 Estimated cost to complete Progress Billings to date Cash Collections for the year 6,840,000 5,500,000 1,880,000 2304,000 4,320,000 7,680,000 1,728,000 3,240,000 5,760,000