Bella has a three-year contract which commenced on 1 January 2020. As at 31 December 2020 Bella extracted the following balances from its ledger relating to the contract: RM’000 RM’000 Total contract value 140,000 Cost incurred up to 31 December 2019: Attributable to work completed 52,000 Inventory purchased for use in future years 8,000 60,000 Progress billing to date 45,000 Cash received 26,500 Other information: Expected further costs to completion 48,000 As at 31 December 2020, the contract was certified as 40% complete. Required: Prepare extracts from the statement of profit or loss and statement of financial position for the year- ended 31 December 2020.
Bella has a three-year contract which commenced on 1 January 2020. As at 31 December 2020 Bella extracted the following balances from its ledger relating to the contract: RM’000 RM’000 Total contract value 140,000 Cost incurred up to 31 December 2019: Attributable to work completed 52,000 Inventory purchased for use in future years 8,000 60,000 Progress billing to date 45,000 Cash received 26,500 Other information: Expected further costs to completion 48,000 As at 31 December 2020, the contract was certified as 40% complete. Required: Prepare extracts from the statement of profit or loss and statement of financial position for the year- ended 31 December 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bella has a three-year contract which commenced on 1 January 2020. As at 31 December 2020 Bella extracted the following balances from its ledger relating to the contract:
|
RM’000 |
RM’000 |
|
|
Total contract value |
140,000 |
|
|
Cost incurred up to 31 December 2019: |
||
|
Attributable to work completed |
52,000 |
|
|
Inventory purchased for use in future years |
8,000 |
60,000 |
|
Progress billing to date |
45,000 |
|
|
Cash received |
26,500 |
|
|
Other information: |
||
|
Expected further costs to completion |
48,000 |
As at 31 December 2020, the contract was certified as 40% complete.
Required:
- Prepare extracts from the statement of profit or loss and
statement of financial position for the year- ended 31 December 2020.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education