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883 3. As of December 31, 20x6, Cady Construction has one construction job for which the construction in progress (CIP) account has a balance of P20,000 and the bilte ne construction contract account has a balance of P14,000. Cady has another construction ich for which the construction in progress account has a balance of P3,000 and the bi construction contract account has a balance of P5,000. Indicate the amount of cotre Osset and/or contract liability that Cady would show in its December 31, 2016, bolonce sheet?

883 3. As of December 31, 20x6, Cady Construction has one construction job for which the construction in progress (CIP) account has a balance of P20,000 and the bilte ne construction contract account has a balance of P14,000. Cady has another construction ich for which the construction in progress account has a balance of P3,000 and the bi construction contract account has a balance of P5,000. Indicate the amount of cotre Osset and/or contract liability that Cady would show in its December 31, 2016, bolonce sheet?

FINANCIAL ACCOUNTING
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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what are the answers for 66 to 70?

asset and/or contract liability that Cady would show in its December 31, 2016, balance 69. What would be the journal entry SDH would use to record revenue in 20x5? to Morayta, Manila. The project was expected to take approximately 3 years. The following 70. The company signed an P800,000 contract to build an environmentally friendly access trail information was collected for each year of the project- Year 1, Year 2, and Year 3: Revenue for long-term contracts.... 66. As of December 31, 20x6, Cady Construction has one construction job for which the construction contract account has a balance of P14,000. Cady has another construction job construction in progress (CIP) account has a balance of P20,000 and the billings on 10 MULTIPLE CHOICE PROBLEMS 883 r. Any en Ctions ntract 0,000 construction in progress (CIP) account has a balance of P20,000 and the billings on construction contract account has a balance of P14,000. Cady has another construction ich for which the construction in progress account has a balance of P3,000 and the billicc construction contract account has a balance of P5,000. Indicate the amount of contract Osset and/or contract liability that Cady would show in its December 31, 2016, bolance 000 000 sheet? lise the following information for questions 67 to 69: Sahara Desert Homes (SDH) reports under PFRS, and constructed a new subdivision during 20yA and 20x5 under contract with Cactus Development Co. Relevant data are summarized below ne year- point-in- P3,000,000 1,200,000 600,000 Contract amount. ... 20x4 Cost...... 20x5 20x4 800,000 Gross profit ....... 400,000 1,500,000 1,500,000 20x5 contract 20x4 Contract...... 20x5 Billings.. SDH uses the point-in-time/cost recovery method under PFRS to recognize revenue. 67. What would be the journal entry made in 20x4 to record revenue? 1,500,000 Accounts receivable.... 1,500,000 a. Revenue for long-term contracts.... .2,300,000 Accounts receivable.... Gross profit. .. Revenue for long-term contracts.... Construction in progress.. Cost of construction.... 800,000 1,500,000 b. 800,000 C. 1,200,000 2,000,000 Revenue for long-term contracts... Cost of construction.... 1,200,000 d. 1,200,000 Revenue for long-term contracts.. 68. In its December 31, 20x4 balance sheet, SDH would report: The asset, cost and profits in excess of billings, of P500,000. b. a. The liability, billings in excess of cost, of P300,000. The asset, contract amount in excess of billings, of P1,500,000. d. С. The asset, deferred profit, of P 400,000. what would be the journal entry SDH would use to record revenue in 20x5? a. Accounts receivable.... Revenue for long-term contracts.. b. Construction in progres... ..1,500,000 1,500,000 . 400,000 600,000 Cost of construction.... 1,000,000 Revenue for long-term contracts.... Cost of construction.... Gross profit... Revenue for long-term contracts.... .....2.000,000 1.000,000 C. 3,000,000 d. Construction in progres.... 1,200,000 600,000 Cost of construction.... Revenue for long-term contracts.. 1,800,000 MGNX 0.7mm AMPO1614 EAR AF 6925282255402
Transcribed Image Text:asset and/or contract liability that Cady would show in its December 31, 2016, balance 69. What would be the journal entry SDH would use to record revenue in 20x5? to Morayta, Manila. The project was expected to take approximately 3 years. The following 70. The company signed an P800,000 contract to build an environmentally friendly access trail information was collected for each year of the project- Year 1, Year 2, and Year 3: Revenue for long-term contracts.... 66. As of December 31, 20x6, Cady Construction has one construction job for which the construction contract account has a balance of P14,000. Cady has another construction job construction in progress (CIP) account has a balance of P20,000 and the billings on 10 MULTIPLE CHOICE PROBLEMS 883 r. Any en Ctions ntract 0,000 construction in progress (CIP) account has a balance of P20,000 and the billings on construction contract account has a balance of P14,000. Cady has another construction ich for which the construction in progress account has a balance of P3,000 and the billicc construction contract account has a balance of P5,000. Indicate the amount of contract Osset and/or contract liability that Cady would show in its December 31, 2016, bolance 000 000 sheet? lise the following information for questions 67 to 69: Sahara Desert Homes (SDH) reports under PFRS, and constructed a new subdivision during 20yA and 20x5 under contract with Cactus Development Co. Relevant data are summarized below ne year- point-in- P3,000,000 1,200,000 600,000 Contract amount. ... 20x4 Cost...... 20x5 20x4 800,000 Gross profit ....... 400,000 1,500,000 1,500,000 20x5 contract 20x4 Contract...... 20x5 Billings.. SDH uses the point-in-time/cost recovery method under PFRS to recognize revenue. 67. What would be the journal entry made in 20x4 to record revenue? 1,500,000 Accounts receivable.... 1,500,000 a. Revenue for long-term contracts.... .2,300,000 Accounts receivable.... Gross profit. .. Revenue for long-term contracts.... Construction in progress.. Cost of construction.... 800,000 1,500,000 b. 800,000 C. 1,200,000 2,000,000 Revenue for long-term contracts... Cost of construction.... 1,200,000 d. 1,200,000 Revenue for long-term contracts.. 68. In its December 31, 20x4 balance sheet, SDH would report: The asset, cost and profits in excess of billings, of P500,000. b. a. The liability, billings in excess of cost, of P300,000. The asset, contract amount in excess of billings, of P1,500,000. d. С. The asset, deferred profit, of P 400,000. what would be the journal entry SDH would use to record revenue in 20x5? a. Accounts receivable.... Revenue for long-term contracts.. b. Construction in progres... ..1,500,000 1,500,000 . 400,000 600,000 Cost of construction.... 1,000,000 Revenue for long-term contracts.... Cost of construction.... Gross profit... Revenue for long-term contracts.... .....2.000,000 1.000,000 C. 3,000,000 d. Construction in progres.... 1,200,000 600,000 Cost of construction.... Revenue for long-term contracts.. 1,800,000 MGNX 0.7mm AMPO1614 EAR AF 6925282255402
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