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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:

  1. 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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