5. At contract inception, Friedland Co. assessed the contract inaccordance with the principles of PFRS 15 and concludes thatit has a single performance obligation that is satisfied at apoint in time, which is when the construction is completedand legal title over the constructed building is transferred tothe customer. How much are the gross profit, revenue andcost of construction recognized in 20x2, respectively?Gross profitRevenueCost of constructiona. 00.3,920,0002,400,000b. 03,920,000C. 02,400,000d. (420,000)0.0. Use the following information for the next three questions:In 20x1, Friedland Co. entered into a contract with a customer forthe construction of a building. The contract price is a fixed fee ofP12,000,000. Information on the contract is shown below:20x120x2Costs incurred per yearEstimated costs to complete3,920,0005,080,0005,880,0001,000,000

solution concept If the contract has a single performance obligation , and that point is when the…

Answered: cost of construction recognized in…

cost of construction recognized in 20x2, respec Revenue Gross profit а. 0 b. 0 Cost of construction 0. 3,920,000 0. 3,920,000 2,400,000 2,400,000 С. 0 d. (420,000) 0. 0.

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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ote: Total Aet-Cuat linbiwbe Accumulated fundo tthistoation: The recepts and gagmetsalleunte of Liar c for the you Balane If Sub saptindn knded 2lst Delamt 1999 Wee ce Inserrance Rate l,000 ting 3,650 L, 700 600 Glavenalerpanes 6itor Reut fnnitume Sought lana /d 27,250 Sonatins 8,500 8,150 7,80 2,St0 27250 The fillowing nformetim Rates were 3600 2,F00 popaid Geneal Raputes prepaid Doo Raut Buing Subsaptim in Qureas 100 75 Foo 600 The foced assets funituns Cnd fifting Premies bepreciate thu Asets as at Ist jan 999 were; at1,500 A5,00 by o pepare; Youre veequired to Statemat of affats - m Come and"copenditwe allounts 2 Balane sheetas at 3lst Delember 1999,
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