Company has started a contract on 10 March with Customer X. The contract was uncompleted as at 31 December.This is a performance obligation satisfied overtime. Details of the contract as at 31 December 2017 are follows.30 May 2018S 350 000S 120 000S 110 000$ 120 000Expected completion dateTotal contract revenueCosts to 31.12.2017Estimated costs to completionPayments invoiced and receivedRequired:Calculate the amounts to be recognized for this contract in the statement of profit or loss for the year ended 31December 2017 and statement of financial position as at 31 December 2017 assuming the amount of performanceobligation satisfied is calculated using the proportion of costs incurred method.

Calculate the amounts to be recognized for this contract in the statement of profit or loss for the year ended 31 December 2017 and statement of financial position as at 31 December 2017 assuming the amount of performance obligation satisfied is calculated using the proportion of costs incurred method. nce

Calculate the amounts to be recognized for this contract in the statement of profit or loss for the year ended 31 December 2017 and statement of financial position as at 31 December 2017 assuming the amount of performance obligation satisfied is calculated using the proportion of costs incurred method. nce

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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