Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses fu accrual accounting and prepares monthly financial statements. Rustic's records showed the following data relating to the construction of an office building: Total contract awarded $92,400 Total estimated costs on the project $92,400 - $18,000 Payments from the buyer on April 25th = 30% of contract Payments from the buyer on June 17th = 30% of contract Payments from the buyer on July 30th = 40% of contract Costs incurred on the project and billed for the month of April = 40% of total Costs incurred on the project and billed for the month of May = 30% of total Costs incurred on the project and billed for the month of June = 30% of total Project was completed at the end of month 3. Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables on May 30th? $ [ Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables on June 30th? $ 000

Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses fu accrual accounting and prepares monthly financial statements. Rustic's records showed the following data relating to the construction of an office building: Total contract awarded $92,400 Total estimated costs on the project $92,400 - $18,000 Payments from the buyer on April 25th = 30% of contract Payments from the buyer on June 17th = 30% of contract Payments from the buyer on July 30th = 40% of contract Costs incurred on the project and billed for the month of April = 40% of total Costs incurred on the project and billed for the month of May = 30% of total Costs incurred on the project and billed for the month of June = 30% of total Project was completed at the end of month 3. Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables on May 30th? $ [ Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables on June 30th? $ 000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 41P

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Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses full accrual accounting and prepares monthly financial statements. Rustic’s records showed the following data relating to the construction of an office building: Total contract awarded $99,600Total estimated costs on the project $99,600 - $18,000Payments from the buyer on April 25th = 30% of contractPayments from the buyer on June 17th = 30% of contractPayments from the buyer on July 30th = 40% of contractCosts incurred on the project and billed for the month of April = 40% of totalCosts incurred on the project and billed for the month of May = 30% of totalCosts incurred on the project and billed for the month of June = 30% of totalProject was completed at the end of month 3. Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $ Required 2: Assuming no other transaction happened, what is the…
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If 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?A. 5,500,000 C. 250,000B. 500,000 D. 100,000
You were engaged to audit the books of accounts of A. Bonifacio contractors which had a 3 year construction contract in 2020 for Php 900,000. A Bonifacio uses the percentage of completion method for financial statement purposes. Income to be recognized each year is based on the ratio of cost incurred to total estimated cost to complete the contract. Data on this contract follows: Accounts receivable construction contract billings Php 30,000 Construction in progress 93,750 Less: Amounts billed 84,375 10% retention Php 9,375 Net Income recognized in 2020 (before tax) Php 15,000 A. Bonifacio contractors maintains a separate bank account for each construction contract. Bank deposits to this contract amounted to Php 50,000 Required: 6. How much cash was collected on the contract that was not yet deposited as at December 31, 2020? Thank you
A VAT-registered entity is engaged in the business of construction. For each construction project, the entity bills its clients 70% of the contract price throughout each stage of the project and the remaining 30% when the construction is completed. During the 3rd quarter, the data are as follows: July August September Progress Billings sent to client Payments made by |clients P 4,000,000 3,500,000 3,750,000 P 4,600,000 4,100,000 3,850,000 How much is the total output VAT for the quarter? 1,690,000 1,201,000 1,350,000 1,506,000
Ube Construction Company has consistently used the percentage of completion. On January 10, 2007, Ube began work on a P 6,000,000 construction contract. At the inception date, the estimated cost of construction was P 4,500,000. The following relate to the progress of the contract: Income recognized at 12/31/2007 P 600,000 Costs incurred 1/10/2007 through 12/31/2008 3,600,000 Estimated cost to complete at 12/31/2008 1,200,000 How much income should Ube recognize for the year ended December 31, 2001? P 300,000 P 525,000 P 600,000 P 900,000
As of December 31, 2018, Cady Construction has one construction job for which the construction in progress (CIP) account has a balance of $20,000 and the billings on construction contract account has a balance of$14,000. Cady has another construction job for which the construction in progress account has a balance of$3,000 and the billings on construction contract account has a balance of $5,000. Indicate the amount of contractasset and/or contract liability that Cady would show in its December 31, 2018, balance sheet.
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
A construction company entered into a fixed-price contract to build an office building for $38 million. Construction costs incurred during the first year were $12 million and estimated costs to complete at the end of the year were $18 million.During the first year the company billed its customer $14 million, of which $7 million was collected before year-end.What would appear in the year-end balance sheet related to this contract using the percentage-of-completion method?
Haft Construction Company has consistently applied the percentage-of-completion method. On January 10, 2014, Haft began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract: $ 300,000 Gross profit recognized at 12/31/14 Costs incurred 1/01/14 through 12/31/15 Estimated cost to complete at 12/31/15 1,800,000 600,000 In its income statement for the year ended December 31, 2015, what amount of gross profit should Haft report?
What amount of RGP should be reported for the current year if the percentage of completion method is used for all contracts?
Schrand Services offers janitorial services on both a contract basis and an hourly basis. On January I, Schrand collected $26, I00 cash in advance on a six-month contract for work to be performed evenly during the next six months. Prepare the entry on January I to reflect the receipt of $26,100 cash for contract work; use the financial statement effects template. Adjust the appropriate accounts on January 31 for the contract work done during January; use the financial statement effects template . At January 31, a total of 30 hours of hourly rate janitor work was performed but unb illed. The billing rate is $ 19 per hour. Prepare the accounting adjustment needed on January 31, using the financial statement effects template. (The firm uses the account Fees Receivable to reflect the revenue earned but not yet billed.) Refer to above information to prepare Journal entry for each part 1, 2 and 3.