Problem 1 - Percentage of completion ABC Co. Uses the percentage of completion method to account for its construction contracts. Information on a recently completed contract with a fixed contract price of P9,100,000 is shown below: 2021 2022 2023 Costs incurred to date 2,000,000 6,300,000 ? Profit recognized each year 250,000 1,550,000 400,000 Requirement: Compute for the balance of the following A. Cost Incurred during 2023 B. Cost Incurred to date 2023

Problem 1 - Percentage of completion ABC Co. Uses the percentage of completion method to account for its construction contracts. Information on a recently completed contract with a fixed contract price of P9,100,000 is shown below: 2021 2022 2023 Costs incurred to date 2,000,000 6,300,000 ? Profit recognized each year 250,000 1,550,000 400,000 Requirement: Compute for the balance of the following A. Cost Incurred during 2023 B. Cost Incurred to date 2023

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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Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Costs Est'd Costs Billings incurred to Complete 20,540,000 2022 10,500,000 12,500,000 14,440,000 5,460,000 9,984,000 15,756,000 2023 13,156,000 2024 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. contract was delayed for 8 weeks In 2024, the What is the gross profit for 2024? 1,164,000 1,466,400 A. C. 1,724,000 в. D. 1,824,000 PIS
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,860,000. The project began in 2021 and was completed in 2022 Data relating to the contract are summarized below: 2021 $ 372,000 $1,899,00e 1,488,eee 524,000 318,eee 2022 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2,336,800 2,542, 000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time occording to percentege of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 ssuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented ot the end of 2021 assuming Nortel recognizes revenue over time according to percentege of completion. 4. Prepare a partial…
Use the percentage-completion method and show all calculations and explanation in detail.
Current Attempt in Progress Flounder, Inc. began work on a $6,504,000 contract in 2020 construct an office building. During 2020, Flounder, Inc. incurred costs of $1,639,900, billed its customers for $1,300,000, and collected $1,055,000. At December 31, 2020, the estimated additional costs to complete the project total $3,650,100. Prepare Flounder's 2020 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation (To record costs incurred.) (To record billings.) (To record collections.) (To recognize revenue.) eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer
8. How much is the Gross Profit/Loss Realized in 2018? * Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project 2017 2018 2019 Costs inenered to dnte Estimsted cost to complete Progess Billings to dnte Cash Collectiona for the year 2160,000 4,500,000 7,520,000 6840,000 5,500,000 1,690, 000 2,304,000 4,320,000 7,680,000 1,728.000 3,240,000 5,760,000 9. How much is the Gross Profit/Loss Realized in 2019? * Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 10,200,000 10,200,000 9,800,000 8,760,000…
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Q3: An engineer determined the payback period of the project contract to be 9 years. The following table presents the project contact cost information: Annual cost First cost 15 M Salvage 5 M Contract 3M Ifi-13%, do you agree with that an engineer, and why?
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