Konstruk Construction Company uses the percentage of completion method of accounting. In 2006, Konstruk began working under contract # 1105A, which provided for a contract price of P12,000,000. Other details were as follows: 2006 Cost incurred during the year Estimated cost to complete Billing during the year Collections during the year P1,800,000 7,200,000 2,760,000 1,500,000 2007 P9,450,000 9,240,000 9,300,000

Konstruk Construction Company uses the percentage of completion method of accounting. In 2006, Konstruk began working under contract # 1105A, which provided for a contract price of P12,000,000. Other details were as follows: 2006 Cost incurred during the year Estimated cost to complete Billing during the year Collections during the year P1,800,000 7,200,000 2,760,000 1,500,000 2007 P9,450,000 9,240,000 9,300,000

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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Q.3.
On September 1, 20x1, ABC Co. enters into a contract with a customer to remodel a plant's electrical wirings and install a new generator for a total consideration of P10M. The remodeling and the installation single performance obligation treated as a satisfied over time. The expected contract costs Generator LO as follows: Other costs Expected total contract costs 2,500,000 4,000,000 6,500,000 VERSITY Additional information: • ABC Co. uses the cost-to-cost method in measuring its progress towards the complete satisfaction of the performance obligation. • ABC Co. incurs total costs of P4,000,000 in 20x1, including the cost of the generator. The customer obtains control of the generator when it is delivered to the site in December 20x1. However, the generator will not be installed until March 20x2. • • ABC Co. regards the cost of the generator as significant in relation to the expected total contract costs-eating during examinations, quizzes or plagiarism in connection . Although ABC Co.…
2 During 20xl, Cord Builders, Inc. started work on a P9,000.00 fixed-price construction contract. Cord appropriately uses the percentage-of-completion method in accounting for the contract. Cord's accounting records disclosed the following 20x1 20x2 Cumulative contract costs incurred 6.300,000 8,100,000 3,900,000 Estimated total costs at completion 7,800,000 How much are the revenue and cost of construction recognized 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 (AICPA-Adapted) c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,000
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Crane Corporation uses the completed-contract method. At the end of the first year of a $9023000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2021000 O $991000 O $247750 O $275000 O $0 6011000 1811000 1536000 In the first year, Crane should recognize gross profit of Crane Corporation uses the co information is available: Costs to date: Estimated costs to complete Progress billings during the y Cash collected during the yea In the first voor Crano should r Snipping Tool Screenshot copied t Select here to mark
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] In 2021, 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 2023. Information related to the contract is as follows: 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) 2021 2022 $2,044,000 $2,628,000 5,256,000 2,628,000 2,170,000 2,502,000 1,885,000 2,600,000 Problem 6-10 (Algo) Part 5 5. 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. (Do not round intermediate…
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Required Information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following Information applies to the questions displayed below.] 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: 2025 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2024 2026 $ 2,490,000 5,810,000 2,030,000 $ 3,984,000 $ 2,008,600 1,826,000 в 4,444,000 3,900,000 3,526,000 4,285,000 1,815,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 4 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. Note: Do not round Intermediate calculations and round your final…
The payments required on a contractual obligation are $800 per month. The contract was purchased for $9,250 just before a regular payment date. The purchaser determined this price based on a required rate of return of 4.3% compounded monthly. How many payments will be required, include the partial final payment? 12 payments 24 payments 9 payments 6 payments 18 payments
hrd.2
Gupta Industries received a $380,000 prepayment from Packard Associates for the sale of new equipment. Gupta will bill Packard an additional $108,000 upon delivery of the equipment. Upon receipt of the $380,000 prepayment, how much should Gupta recognize for a contract asset, a contract liability, and accounts receivable? Muitiple Choice Contract asset: $0; contract liability: $380.000, accounts receivable, $108.000. Contract asset: $0; contract liability: $380.000, accounts receivable, $0. Contract asset: $380,000; contract liability: $0. accounts receivable. SO: