Constructing and Assessing Income Statements Using Cost-to-Cost Method On March 15, 2012, Frankel Construction contracted to build a shopping center at a contract price of $120 million. The schedule of expected (which equals actual) cash collections and contract costs foll millions): Year Cash Collections Cost Incurred 2012 2013 2014 Total $30 50 40 $120 (a) Calculate the amount of revenue, expense, and net income for each of the three years 2012 through 2014 using the cost-to-cost method. Rounding instructions: Round percentages to the nearest whole number. Use rounded percentages for remaining calculations. Round revenue and income to the nearest whole number. Enter $ answers in millions. Costs Year incurred 2012 S 2013 2014 $15 40 30 $85 20 x 30 x 35 x $85 Cost-to-CostMethod Percent of total expected costs Revenue recognized 24% x $ 35% x 41% X 29 x $ 42 x 49 x $120 Income 9 x 12 x 14 x $35

Constructing and Assessing Income Statements Using Cost-to-Cost Method On March 15, 2012, Frankel Construction contracted to build a shopping center at a contract price of $120 million. The schedule of expected (which equals actual) cash collections and contract costs foll millions): Year Cash Collections Cost Incurred 2012 2013 2014 Total $30 50 40 $120 (a) Calculate the amount of revenue, expense, and net income for each of the three years 2012 through 2014 using the cost-to-cost method. Rounding instructions: Round percentages to the nearest whole number. Use rounded percentages for remaining calculations. Round revenue and income to the nearest whole number. Enter $ answers in millions. Costs Year incurred 2012 S 2013 2014 $15 40 30 $85 20 x 30 x 35 x $85 Cost-to-CostMethod Percent of total expected costs Revenue recognized 24% x $ 35% x 41% X 29 x $ 42 x 49 x $120 Income 9 x 12 x 14 x $35

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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table belom shows the financial statements of a fan components supplier company that started it's operation in 1st January 2021.Calculate the profit and loss statement for the year ended December 2021.
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Jett Baby Wong Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2017, Jett started work on a P35,000,000 construction contract that was completed in 2018. The following information was taken from Jett's 2017 accounting records: Progress billings Costs incurred P11.000,000 10,500,000 7,000,000 Estimated costs to complete 21.000,000 Collections What amount of gross profit should Jett have recognized in 2017 on this contract?
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