Required: Compute the following, placing your answer in the spaces provided and showingPROBLEMS361Supporting computations below:1 Cash collected by KP on Cincy One during 20x42 Actual costs incurred by KP on Cincy One during 20x42 On December 31, 20x4, the estimated remaining costs to complete4. The percentage of Cincy One that was completed during 20x4 X-Incomplete DataIn 20x4, KP Building Inc. began work on a four-year construction project (called "Cincy OnerThe contract price is P300 million. KP uses the percentage-of-completion (over time methoaccounting. At the end of 20x5, the following financial statement information indicates heresults to date for Cincy One:Income Statement:Gross Profit (before-taxes) recognized in 20x4P22 millionBalance SheetAccounts Receivable from construction billings....Construction in progress...Less: Billings on construction..Net billings in excess of construction in progress....P10 millionP66 million(75million)P9 million

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In 20x4, KP Building Inc. began work on a four-year construction project (called "Cincy On The contract price is P300 million. KP uses the percentage-of-completion (over time method accounting. At the end of 20x5, the following financial statement information indicotes the results to date for Cincy One: Income Statement: Gross Profit (before-taxes) recognized in 20x4 P22 million Balance Sheet: Accounts Receivable from construction billings. Construction in progress. Less: Billings on construction, Net billings in excess of construction in progress.. P10 million P66 million (75million) P9 million

In 20x4, KP Building Inc. began work on a four-year construction project (called "Cincy On The contract price is P300 million. KP uses the percentage-of-completion (over time method accounting. At the end of 20x5, the following financial statement information indicotes the results to date for Cincy One: Income Statement: Gross Profit (before-taxes) recognized in 20x4 P22 million Balance Sheet: Accounts Receivable from construction billings. Construction in progress. Less: Billings on construction, Net billings in excess of construction in progress.. P10 million P66 million (75million) P9 million

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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The Leverenz Construction Company began work on a $15,000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of-Completion method is used. Given the following: Costs incurred to date Estimated costs to complete Billings to date Collections to date 2021 Net Income (Loss) is: Select one: O a. $(650) O b. $(200) O c. $(539) O d. $(89) e. $200 2020 $3,300 9,900 3,000 2,900 2021 $6,800 8,400 5,800 5,500 2022 $15,700 0 13,000 12,000
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The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to dato December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are: Select one: a. Current Liability of $1,500 O b. Current Liability of $200 O c. Current Asset of $1,500 d. Current Liability of $875
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In 2018, the Laguna Inc entered into a contract to construct a road for 5th Avenue for $14,000,000. The road was completed in 2018. Information related to the contract is as follows: Laguna uses the percentage-of-completion method of accounting for long-term construction contracts. Required: Calculate the amount of gross profit to be recognized in each of the three years. Prepare all necessary journal entries for each of the years (credit various accounts for construction costs incurred). Prepare a partial balance sheet for 2016 and 2017 showing any items related to the contract.
In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One). The contract price is $460 million. KP recognizes revenue on this contract over time according to percentage of completion. At the end of 2024, the following financial statement information indicates the results to date for Cincy One: INCOME STATEMENT: Gross profit (before-taxes) recognized in 2024 $ 43 million BALANCE SHEET: Accounts receivable from construction billings $ 30 million Construction in progress $ 86 million Less: Billings on construction $ (96 million) Net billings in excess of construction in progress $ 10 million Required: Compute the following, placing your answer in the spaces provided and showing supporting computations below. Note: Round your percentage answer to the nearest whole number. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
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