East and West Construction has undertaken the construction of a bridge over the River Till for the Campton Council. The value of the contract is $125,000 and it is at a stage where profits can be attributed to it. When work was certified, Campton Council was sent an invoice for progress payment. The contractors have given the contract number 86 for reference, and the following are the details as shown in the books: Labour on site Materials direct to site, less returns Materials from store and workshops Plant Upkeep Account-hire and use of plant Direct expenses General overhead apportioned to this contract Materials on hand November 30 Wages accrued at November 30 Direct expenses accrued Value of work certified by the council's surveyor Cash received on account Required: $ 40,500 42,000 8,120 1,210 2,300 3,710 630 780 160 110,000 88,000 (a) Prepare the contract 86 account as at November 30th 2011. (b) Prepare the contract P&L account for the year ended November 30th 2011.

East and West Construction has undertaken the construction of a bridge over the River Till for the Campton Council. The value of the contract is $125,000 and it is at a stage where profits can be attributed to it. When work was certified, Campton Council was sent an invoice for progress payment. The contractors have given the contract number 86 for reference, and the following are the details as shown in the books: Labour on site Materials direct to site, less returns Materials from store and workshops Plant Upkeep Account-hire and use of plant Direct expenses General overhead apportioned to this contract Materials on hand November 30 Wages accrued at November 30 Direct expenses accrued Value of work certified by the council's surveyor Cash received on account Required: $ 40,500 42,000 8,120 1,210 2,300 3,710 630 780 160 110,000 88,000 (a) Prepare the contract 86 account as at November 30th 2011. (b) Prepare the contract P&L account for the year ended November 30th 2011.

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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