R Ltd has the following year-end information regarding one of its long-term contracts: Valuc certified-recognised as turnover Profit recognised 2,500,000 750,000 1,875,000 2,200,000 220,000 Cash received Costs to date Future costs (a) The cost of work certified was

R Ltd has the following year-end information regarding one of its long-term contracts: Valuc certified-recognised as turnover Profit recognised 2,500,000 750,000 1,875,000 2,200,000 220,000 Cash received Costs to date Future costs (a) The cost of work certified was

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7RE

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A construction company has the following data concerning one of its contracts. £m Contract price 2.00 Value certified 1.30 Cash received 1.20 Costs incurred 1.05 Cost of work certified 1.00 The company estimates the attributable profit on contracts based on the proportion of the value of work certified that has been paid by the client. The profit to be attributed to the contract is A £272,485 B £274,586 C £276,923 D £280,410
The main business of Santolina Co is building work. At the end of September 20X3 there is an uncompleted contract on the books, details of which are as follows. 1.4.X1 Date commenced 23.12.X3 Expected completion date 290,000 210,450 230,000 Total contract revenue Costs to 30.9.X3 Value of performance obligations satisfied to 30.9.X3 Amounts invoiced for work certified to 30.9.X3 Cash received to 30.9.X3 Estimated costs to completion at 30.9.X3 210,000 194,000 20,600 Santolina Co calculates satisfaction of performance obligations based on work certified as a percentage of contract price. Required Prepare calculations showing the amount to be included in the statement of profit or loss and statement of financial position at 30 September 20X3 in respect of the above contract.
Construction Ltd is engaged on two contracts A and B during the year. Following particular Is are obtained at the year end ( Dec. 31): Contract A Contact B Date of Commencement Apr-01 $ Sep-01 $ Contract price 6,00,000 5,00,000 Materials issued 1,60,000 60,000 Materials returned 4,000 2,000 Materials at size (Dec.31) 22,000 8,000 Direct Labour 1,50,000 42,000 Site Expenses Establishment Expenses 66,000 25,000 80,000 35,000 7,000 Plant installed at site 70,000 Value of Plant (Dec. 31) Cost of contract not yet certified 65,000 64,000 23,000 10,000 Value of contract certified 4,20,000 1,35,000 Cash received from contractees 3,78,000 1,25,000 Architect's Fees 2,000 1,000 During the Period materials amounting to $ 9,000 have been transferred from contract A to contact B. Your are required to show: (a) Contract accounts (b) Contractee's accounts.
A construction company has the following data concerning one of its contracts: Contract price Sh 2,000,000, Value of work certified Sh 1,300,000, Cash received Sh 1,200,000, cost to date Sh 1,050,000 and cost of work certified Sh 1,000,000. The profit to be attributed to the contract is Question 39Answer a. Sh 250,000 b. Sh 277,000 c. Sh 300,000 d. Sh 950,000
If the company records revenue at a point in time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31? A. 5,100,000 C. 250,000B. 500,000 D. 100,000
Bella Construction Co. uses the percentage-of-completion method. In 20x1, Bella began work on a contract for $2,477,005; it was completed in 20x2. The following cost data pertain to this contract: Year ended December 31, 20x1 Year ended December 31, 20x2 Costs incurred during the year $869,041 $559,369 Estimated costs to complete at the of year $494,825 - The amount of gross profit to be recognized on the income statement for the year ended December 31, 20x2 is: a. $553,770 b. $339,315 c. $1,048,595 d. $1,113,139
4 In accounting for construction contracts using the percentage of completion method, the gross profit recognized during the year would be the estimated gross profit multiplied by the percentage of the costs incurred to date to the : Group of answer choices Total estimated cost Total contract price Total cost incurred to date Unbilled portion of the contract price
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Survivor Company incurred the following cost for the year-ended December 31, 2021: Depreciation of delivery equipment Depreciation of administrative equipment Depreciation of production equipment Direct materials Direct labor Indirect labor Utilities, admin department Utilities, sales department Rent, finished goods warehouse Rent, raw materials warehouse Determine the total period cost. P24.426 P49,343 P13,994 P10,555 P39,043 P38,237 P56,799 P57,027 P22,200 P20,483
In accounting for construction contracts using the percentage of completion method, the gross profit recognized during the year would be the estimated gross profit by the percentage of the costs incurred to date the: Total estimate cost Total cost incurred to date Unbilled portion of the contract price Total contract price
Jenga Ltd. is a construction company whose financial year ends on 31 March. The information provided below was extracted from the books of the company in connection with the three construction contracts undertaken by the company during the financial year ended 31 Mach 2005. Contract No.468 Contract No.469 Contract No.470 Sh 000 Sh. 000 Sh. 000 Contract price 3600 4800 2500 Cost incurred up to 31 March 2004 1800 3000 1500 Cost incurred during the year600 1000 500 Estimated total cost of the contract 3000 5200 2300 Total billings to date 2800 4500 1800 Total cash received to date2600 4200 1700 Total profit/(loss) reported on the contract to date360 30 (20) General administration expenses6012030 Required: Using the percentage of completion method of accounting for long-term construction contracts: Calculate the profit or loss realised on each contract for the year ended 31 Marcy 2005. Prepare profit and loss account extracts for each contract for the year ended 31 March 2005. Prepare…
Monroe Construction Company uses the percentage-of-completion method of accounting.In 20x4, Monroe began work on a contract it had received which provided for a contract price of $15,000,000. Other details follow:Costs incurred during the year $7,200,000Estimated costs to complete as of December 31 4,800,000Billings during the year 6,600,000Collections during the year 3,900,000What should be the gross profit recognized in 20x4?