Problem 4On March 1, 2022, AGGREGATES Company enters a contract to build a hotel whichis estimatedrevenue over time.tocostP31,200,000.Thecompany recognizesconstructionData on this project for 2022-2024 follow:ContractCostsEst'd CostsBillings10,500,00012,500,000to Complete20,540,000incurred20225,460,0009,984,00015,756,000202313,156,000202414,440,000The contract contains a penalty clause that penalizes the company a reductionof P70,000 from the contract price for every week of delay.In 2024,thecontract was delayed for 8 weeksWhat is the gross profit for 2024?1,164,0001,466,4001,724,0001,824,000A.c.в.D.Problem 5MOC Construction Company started work on three job sites during theAny costs incurred are expected to be recoverable.currentData relating toyear.the three jobs are given below:SiteContractCostEstimated CostsBillings onCollectionsPriceIncurredto CompleteContracton Billings5,000,0007,000,0002,500,0003,750,0001,000,0005,000,000900,0005,000,000900,000| 4,000,0001,000,0001,000,0001,500,0001,000,000If the company records revenue over time, how much must be shown as currentasset in the balance sheet of MOC Construction Company as of December 31?5,500,000500,000А.C.250,000100,000в.D.If the company records revenue at a point in time, how much must be shown ascurrent asset in the balance sheet of MOC Construction Company as of December31?5,100,000250,000100,000A.C.В.500,000D.PIEWICAT

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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. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 5,460,000 9,984,000 15,756,000 2022 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. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? A. 1,164,000 в. c. 1,724,000 1,824,000 1,466, 400 D. Problem 5 PIR

Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. revenue over time. Data on this project for 2022-2024 follow: The company recognizes construction Contract Costs Est'd Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 5,460,000 9,984,000 15,756,000 2022 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. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? A. 1,164,000 в. c. 1,724,000 1,824,000 1,466, 400 D. Problem 5 PIR

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which The is estimated cost P31,200,000. company recognizes construction to Data on this project for 2022-2024 follow: Est'd Costs revenue over time. Contract Costs Billings 10,500,000 12,500,000 14,440,000 incurred to Complete 20,540,000 13,156,000 2022 5,460,000 9,984,000 2023 2024 15,756,000 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 1,724,000 1,824,000 А. с. в. D.
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Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 316,000 $ 1,700,000 Estimated costs to complete as of 12/31 1,264,000 0 Billings during the year 400,000 1,660,000 Cash collections during the year 290,000 1,770,000 Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time.
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How much is the contract revenue yo date in the year 2019?
On January 1, 2021, Ka Leody Inc. entered into a long-term construction contract with fixed contract price of P 5,000,000. Ka Leody billed its client as follows: 30% during 2021, 40% during 2022 and the remainder at the end of project completion. The following data were provided by the cost accountant of the Ka Leody Inc: 2020 2021 2022 Cumulative cost incurred as of the end of the year P 2,200,000 P 3,600,000 P 4,800,000 Estimated remaining cost to complete at the end of the year P 3,300,000 P 900,000 What is the revenue to be recognized on December 31, 2021 under percentage of completion method ?
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