2 During 20xl, Cord Builders, Inc. started work on a P9,000.00fixed-price construction contract. Cord appropriately uses thepercentage-of-completion method in accounting for thecontract. Cord's accounting records disclosed the following20x120x2Cumulative contract costs incurred6.300,0008,100,0003,900,000Estimated total costs at completion7,800,000How much are the revenue and cost of construction recognized20x2, respectively?a. 2,220,000; 2,150,000b. 2,520,000; 2,400,000(AICPA-Adapted)c. 2,520,000; 2,420,000d. 2,500,000; 2,400,000

Solution Given Total contract price =9000000 20X1 20X2 cumulative cost…

Answered: How much are the revenue and cost of…

How much are the revenue and cost of construction recognized in 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000 AICPA - Adapted)

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

Keith Urban Bookstores is considering a major expansion of its business. The details of the proposed expansion project are summarized below: The company will have to purchase $600,000 in equipment at t = 0. This is the depreciable cost. The project has an economic life of four years. The cost can be depreciated on a MACRS 3-year basis, which implies the following depreciation schedule: MACRS Depreciation Rates Year 1 0.33 0.45 0.15 0.07 2 3 4 At t = 0, the project requires that inventories increase by $40,000 and accounts payable increase by $5,000. The change in net operating working capital is expected to be fully recovered at t = 4. (Hint: NWC = CA-CL) The project's salvage value at the end of four years is expected to be $0. The company forecasts that the project will generate $700,000 in sales the first two years (t = 1 and 2) and $400,000 in sales during the last two years (t = 3 and 4). Each year the project's operating costs excluding depreciation are expected to be 55% of…
What is the adjusted carrying amount of the land? a. 3,100,000 b. 3,300,000 c. 3,000,000 d. 3,250,000
1. This is a regional government's expenditure whose benefits exceed one fiscal year and will augment regional assets or assets in the form of infrastructure, equipment, and other fixed assets. a. Capital expenditure b. Consumption c. Utilization d. Transfer payments
Q6. Land was acquired for $200 000 on 1 July 2017. On 30 June 2018 it has a fair value of $150 000. On 30 June 2020, due to increased population, the land is considered to have a fair value of $270 000. Write the journal entries needed.
Topic: Government Grant Question: How much should be grant income for the first year of grant foreach of the following cases? a. A 10-year, non-interest bearing, P20,000,000 term loan was received from the Philippine government. Without the loan from the government, the entity would need to pay 8% interest per year. b. P3,000,000 government grant was received to support the continued existence of the entity. The entity was heavily affected by the ashfall from a nearby volcano. The entity has a total legal life of 50 years and is on its 40th year.
how did you get these numbers ? Year 2022: Weighted-Average accumulated expenditure Date Amount Capitalization period Weighted Average Accumulated Expenditures 1-Jan-22 $8,100,000 9/9 $8,100,000 31-Jan-22 $450,000 8/9 $400,000 30-Apr-22 $783,000 5/9 $435,000 31-Aug-22 $1,080,000 1/9 $120,000 Total $10,413,000 $9,055,000
May I ask for an explanation and solution to the question for a better understanding. Thank you! 11. What is the amount of Sculler's working capital at December 31, 2021? a. P41,000 b. P45,000 c. P50,000 d. P91,000
A National Government Agency has an approved appropriation for 2022 of P100,000,000. 25% of the amount was appropriation reserve and the balance was released per General Allotment Release Order (GARO) No. 2022-1. Notice of Cash Allocation of P30,000,000 was received by the agency. How much is the Subsidy from National Government to be recorded by the agency?
E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) b. Payment for construction from note proceeds c. Cost of land fill and clearing d. Delinquent real estate taxes on property assumed by purchaser e. Premium on 6-month insurance policy during construction f. Refund of 1-month insurance premium because construction completed early g. Architect's fee on building h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) i. Commission fee paid to real estate agency j. Installation of fences around property k. Cost of razing and removing building 1. Proceeds from salvage of demolished building m. Interest paid during construction on money borrowed for construction n. Cost of parking lots and driveways o. Cost of trees and shrubbery…
The following information is available for a multi-purpose cooperative: Total Revenues, P43,345,000 Total Expenses, P10,450,000 How much of the net surplus is to be allocated for Reserve fund? (based on the minimum requirement) Options: a. P3,289,500 b. P986,250 c. P2,302,650 d. Not given
5–3 General Capital Assets. Make all necessary entries in the appropriate governmentalfund general journal and the government-wide governmental activities generaljournal for each of the following transactions entered into by the City of Fordache.1. The city received a donation of land that is to be used by Parks and Recre-ation for a park. At the time of the donation, the land had a fair value of$5,200,000 and was recorded on the donor’s books at a historical cost of$4,500,000.2. The Public Works Department sold machinery with a historical cost of$35,100 and accumulated depreciation of $28,700 for $6,400. The machin-ery had originally been purchased with special revenue funds.3. A car was leased for the mayor’s use. Since the term of the lease exceeded75 percent of the useful life of the car, the lease was capitalized. The firstpayment was $550 and the present value of the remaining lease paymentswas $30,000.4. During the current year, a capital projects fund completed a new public…
What is the depreciation expense on the factory building to be reported for 20x1? What is the grant income to be reported for 20x1? * What is the loss to be recognized resulting from the repayment of the grant in 20x3?