Exercise 2: A national government agency had the following transactions relating with inventories and fixed assets: 1) Issued PO for spare parts, P20,000. 2) Receipt of spare parts. 3) Payment of liability for spare parts, net of appropriate government tax. 4) Signed a contract for construction of building, P5,600,000. 5) Payment of 15% mobilization fee to contractor of buildings. 6) Receipt of 1st progress billing-50% completion. 7) Payment of 1st progress billing, net of advances and tax. 8) Receipt of final billing100% completion. 9) Final payment for building, net of tax. 10) Turnover and acceptance of building. 11) Depreciation for the building, 20 years estimated life. (6 months) Required: Journalize the above transactions.

Exercise 2: A national government agency had the following transactions relating with inventories and fixed assets: 1) Issued PO for spare parts, P20,000. 2) Receipt of spare parts. 3) Payment of liability for spare parts, net of appropriate government tax. 4) Signed a contract for construction of building, P5,600,000. 5) Payment of 15% mobilization fee to contractor of buildings. 6) Receipt of 1st progress billing-50% completion. 7) Payment of 1st progress billing, net of advances and tax. 8) Receipt of final billing100% completion. 9) Final payment for building, net of tax. 10) Turnover and acceptance of building. 11) Depreciation for the building, 20 years estimated life. (6 months) Required: Journalize the above transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Buildmore Construction limited received a contract for $6000000 in year 1 to build a parking complex for the federal government. The following data was accumulated during the construction period: Total costs to date year1 $1800 000,Year 2 $2090 000,Year 3 $5000 000;Estimated cost to complete Year 1 $2700 000,Year 2 $3410 000,Year 3 $0;Progress billings during year Year 1 $2000 000,Year 2 $2000 000,Year 3 $2000 000:Cash collected during year Year 1 $1500 000,Year 2 $2000 000,Year 3 $2500 000. Prepare journals
please answer and explain with work and steps thanks
49) A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000. What entry is prepared by the Capital Projects Fund? A) Debit Expenditures $1,000,000, Credit Liability $1,000,000 B) Debit Building $1,000,000, Credit Expenditures $1,000,000 C) Debit Other Financing Uses $1,000,000, Credit Expenditures $1,000,000 D) Debit Encumbrances $1,000,000, Credit Reserve for Encumbrances $1,000,000 50) Which statement below is incorrect with respect to the Government-wide financial statements? A) All governmental fund categories must convert to the modified accrual basis of accounting. B) It is necessary to eliminate interfund balances within the governmental funds. C) Capital lease liabilities associated with governmental funds must be included on the Government-wide financial statements. D) All fixed assets and long-term debt for governmental funds must be included on the Government-wide financial statements.
government in order to defray safety and environmental incurred over four years, respectively, P2,000,000, Prepare journal entries for the first year to record each An entity received a government grant under the following 1. An entity received a grant of P30,000,000 from the British Problem 24-1 (PAS 20) An entity received a government grant under the follo independent situations: costs within the area where the entity is located. The safety and environmental costs are expected to be P4,000,000, P6,000,000 and P8,000,000. 2. An entity received a grant of P40,000,000 from the American government for the construction of laboratory and research facility with an estimated cost of P50,000,000 and useful life of 20 years. 3. An entity is granted a large tract of land in Cordillera by the Philippine government. The fair value of the land is P50,000,000. The grant requires that the entity shall construct a factory and employ only personnel residing in the Cordillera region. The cost of the…
Your Question: Assume the Scenic Rivers Commission (a federal agency) began the fiscal year with the following account balances: SCENIC RIVERS COMMISSION Trial Balance October 1, 2023 Debits Credits Fund Balance with Treasury $164,000 Supplies 107,000 Equipment 1,363,000 Accumulated Depreciation $483,000 Accounts Payable 129,000 Wages Payable 84,000 Cumulative Results of Operations 938,000 $1,634,000 $1,634,000 Congress passed a spending bill providing $15,600,000 to fund the agency’s operations for the year. During the first quarter, the commission processed (accounts payable) the following items for payment. Supplies 258,000 Equipment 510,000 Contracted services 1,710,000 Total $2,478,000 The commission processed wages and benefits through wages payable in the amount of $707,000. Unexpended appropriations were reclassified to expended appropriations for the items above. Accounts payable of $2,530,000 and wages payable of…
C. 26. A. B. D. The capital projects fund of Hysham completed construction of a new building. The building should be reported in the: I. government-wide statement of net assets. II. capital projects fund. A) I only B) II only C) Either I or II D) Neither I nor II 27. Which presentation method combines the component unit's results into the primary government's financial results? $ 600,000 Proceeds from general obligation bond issue $ 2,000,000 Transfer from Cherry's general fund $ 150,000 In its 20X1 capital projects fund operating statement, Cherry should report these amounts as: Other financing sources A) Blended presentation B) Discrete presentation C) Combined presentation D) Consolidated presentation 28. Financing for the renovation of Cherry City's municipal park, begun and completed during 20X1, came from the following sources: Grant from state government S 0 600,000 $2,750,000 $2,600,000 Revenues $ A) Option A B) Option B C) Option C D) Option D $ $ $ $ 2,750,000 2,150,000 0…
Provide proper solution
D Company entered into a construction agreement in x4 for the rip- rapping of Pier 4. The original contract price was P9,600,000 but a change order was issued in x5 increasing the contract price by P480,000. D uses the percentage of completion method of revenue recognition on long-term construction contracts. The following information are obtained on the project of x4 and x5. Cost incurred to date Estimated costs to complete.. Billings made Cash collections. x4 x5 a. (P960,000) b. ( P480,000) P4,920,000 4,920,000 5,280,000 4,380,000 What is the gross profit (loss) of D on the project for x5? c. (P1,080,000) d. (P840,000) P8,640,000 2,160,000 8,520,000 7,500,000
C. Using the contents presented in the Units supported by information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government.
BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse facilities in Gros Islet. The following information has been provided. Contract price - $25 000 000 Cost during year Estimated cost to complete Progress billings to date Cash collected to date Prepare the following journal entries: 1. To record construction cost 2. To record billings 3. To record collections 4. To record revenue 2021 $ 4 000 000 16 000 000 4 500 000 4 200 000 2022 $8 000 000 8 050 000 11 500 000 11 000 000 2023 $8 100 000 이 25 000 000 25 000 000
C. Using the contents presented in the Units supported by information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government.
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: Problem 6-10 (Algo) Part 4 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year Westgate recognizes revenue over time according to percentage of completion. Costs incurred during the year Estimated costs to complete as of year-end Revenue Gross profit (loss) S 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years, assuming the following costs incurred and costs to complete information. 2024 Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign. Answer is not complete. 2024 $ 2,184,000 5,616,000 2,120,000 1,860,000 2,800,000 2025 2025 $ 3,510,000…