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
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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.
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