put answer to zero decimal place and place answer in descending order. Blue Construction Co. successfully tendered for a 3-year contract to erect some warehousefacilities in a new industrial zone. The following information has been provided.Contract price - $25 000 0002022Cost during yearEstimated cost to completeProgress billings to dateCash collected to date20232024$ 4 000 000$8 000 000$8 100 00016 000 0008 050 000이4 500 00011 500 00025 000 0004 200 00011 000 00025 000 000 ii. Prepare the necessary journal entries for 2023.Dr.Cr.To record construction costsDr.Cr.To record billingsDr.Cr.To record collections

Here is the detailed explanation of each journal entry for 2023:1. To Record Construction…

Answered: Blue Construction Co. successfully…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 35E

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PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 20x2 Total costs incurred to date 1,600,000 6,000,000 Estimated costs to complete 6,400,000 1,500,000 How much revenue is recognized in 20x2? 8M 6M 4M What is the percentage of the progress completed in 20x2? 80% 60% 40% 16%
BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse facilities in Gros Islet. The following information has been provided. Time left 2:20:2 Contract price - $25 000 000 2021 $ 4 000 000 Cast during year Estimated cost to complete Progress billings to date Cash collected to date Cast to date Estimated cost to complete Total estimated cost Percentage complete (Round to nearest whole number) Total contract price Total estimated cast i Complete the following Workings Schedule. Do not enter negative values in the schedule. Estimated gross profit or loss Revenue to recognize to date Less Revenue previously recognized Revenue to recognize in year Estimated gross profitto recognize to date 16 000 000 4 500 000 4 200 000 Less Gross profit or lass previously recognized 2022 2021 $8 000 000 8 050 000 11 500 000 11 000 000 2023 2022 $8 100 000 0 25 000 000 25 000 000 2023 %
What amount is presented as ABC Co's statement of financial position as contract liability?
A construction company has the following data concerning one of its contracts: Contract price Sh 2,000,000, Value of work certified Sh 1,300,000, Cash received Sh 1,200,000, cost to date Sh 1,050,000 and cost of work certified Sh 1,000,000. The profit to be attributed to the contract is Question 39Answer a. Sh 250,000 b. Sh 277,000 c. Sh 300,000 d. Sh 950,000
A Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract revenue Materials Contract X Contract Z $ 260,000 $ 200,000 10,000 10,000 Labor costs 88,000 120,000 Depreciation on 8,000 10,000 equipment Cost incurred for 1,500 1,500 consulting advice Allocated portion of overhead 5,000 3,000 The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another? OA. Contract revenue and labor costs OB. Materials, consulting advice, and allocated overhead OC. Cost of consulting advice and allocated overhead OD. Contract revenue, labor costs, depreciation on equipment and allocated portion of overhead OE. None of the above
Please assits with this cost accounting question Contract Masters Ltd has entered into a contract with Creative Dealers Ltd. for the construction of a new branch office. The contract began on March 1, 2022 and was completed on December 28 2022. The total value of the contract was $12,000,000. On December 30, 2022, an engineer inspected the project and issued a final certificate for work done. The following information is available with regards to the contract: $Site labour costs 3,120,000 Materials direct to site 2,000,000Materials returned 30,500 Materials from store and workshops 500,000 Maintenance of plant and use 980,000 Direct expenses 1,090,000 General overheads 750,000 Materials…
please answer the question on image. thank you.
Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,375,000. Construction activities are summarized below by year: Costs incurred during the year Estimated cost to complete Required: 1. Prepare the journal entries for revenue recognition for each year. 2. Calculate the gross margin for each year on the contract. 20X2 1,700,000 3,400,000 20X3 1,785,000 3,017,500 20X4 3,060,000 O
A telecommunications company contracted for the installation of a fiber optic cable linking two major cities will cost of $960M. This amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value, what is the depreciation charge during the 8th year using the SOYD method? A. $41.28M B. $86M C. NOTA D. $64M
Please help me
16. Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated construction costs at inception was $4,000,000. The construction project was completed after two years. Below are the actual costs for years 1 and 2: Description Cumulative Year 1 Year 2 Cost incurred to date 1,200,000 2,500,000 Estimated additional costs to complete 3,600,000 2,100,000 Billings 1,050,000 2,300,000 Cash Collections 1,000,000 1,900,000 Red has determined that this contract qualifies for revenue recognition over time (as opposed to upon completion). As a result, Red Builders should have recognized profit at the end of year 1 in the amount of:
Kiner, Inc. began work in 20x4 on a contract for $8,400,000. Other data are as follows: 20x4 20x5Costs incurred to date $3,600,000 $5,600,000Estimated costs to complete 2,400,000 —Billings during the year 2,800,000 8,400,000Collections to year 2,000,000 7,200,000 1. If kiner uses the cost recovery method (point in time), the gross profit to be recognized in 20x5 is? 2. If Kiner uses the percentage-of-completion (over time) method, the gross profit to be recognized in 20x4 is?

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