Use the following information for questions 59 & 60 LANTERN Company started operations on January 1, 2022. During the year, the company incurred the following: Contract price for new building New permanent fence surrounding the new building Driveways and parking bays Saving on construction Taxes in arrears assumed by LANTERN Safety inspection on new building Service equipment made as permanent part of the building Excavation Cost Architect fee Payment to city hall for approval of building construction Removal of safety fence after completion of new building Cost of changes to plans and specifications due to incompetence Safety fence around construction site Payment for land 9. Compute for the cost of the Land A. P2,100,000 B. P2,200,000 O. Compute for the cost of the Building A. P13,370,000 B. P12,570,000 C. P2,300,000 C. P12,970,000 9,600,000 190,000 700,000 400,000 200,000 160,000 2,100,000 300,000 560,000 340,000 140,000 320,000 170,000 2,100,000 D. P2,400,000 D. P14,070,000

Use the following information for questions 59 & 60 LANTERN Company started operations on January 1, 2022. During the year, the company incurred the following: Contract price for new building New permanent fence surrounding the new building Driveways and parking bays Saving on construction Taxes in arrears assumed by LANTERN Safety inspection on new building Service equipment made as permanent part of the building Excavation Cost Architect fee Payment to city hall for approval of building construction Removal of safety fence after completion of new building Cost of changes to plans and specifications due to incompetence Safety fence around construction site Payment for land 9. Compute for the cost of the Land A. P2,100,000 B. P2,200,000 O. Compute for the cost of the Building A. P13,370,000 B. P12,570,000 C. P2,300,000 C. P12,970,000 9,600,000 190,000 700,000 400,000 200,000 160,000 2,100,000 300,000 560,000 340,000 140,000 320,000 170,000 2,100,000 D. P2,400,000 D. P14,070,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Only typed solution
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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: 2021 2022 2023 Cost incurred during the year $ 2,604,000 $ 4,032,000 $ 1,940,400 Estimated costs to complete as of year-end 5,796,000 1,764,000 0 Billings during the year 2,040,000 4,596,000 3,364,000 Cash collections during the year 1,820,000 4,000,000 4,180,000 Westgate recognizes revenue over time according to percentage of completion. 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) My calculations Current Assets A/R 220,000 816,000 CIP 3,100,000 ??…
please answer and explain with work and steps thanks
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: 2021 2022 2023 Cost incurred during the year $ 2,640,000 $ 2,300,000 $ 2,926,000 Estimated costs to complete as of year-end 6,160,000 2,660,000 0 Billings during the year 2,080,000 2,860,000 5,060,000 Cash collections during the year 1,840,000 2,800,000 5,360,000 Westgate recognizes revenue over time according to percentage of completion. Required:1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
Company A entered into a P4,500,000 fixed-price contract with a contractor on March 1, 2019 for the construction of an office building. The building was completed and occupied on September 30, 2020. Additional construction costs were incurred as follows: Plans, specifications and blueprints 18,000 Architect's fees for design and supervision 142,500 The building is estimated to have a 40-year useful life from the date of completion and will be depreciated using the 150%-declining balance method. To finance the construction cost, the company borrowed P4,500,000 on March 1, 2019. The loan is payable in 10 annual installments of P450,000 plus interest at the rate of 10%. The company used part of the loan proceeds for working capital requirements. The Company's average amounts of accumulated building construction expenditures were as follows: For the period March 1 to December 31, 2019 1,350,000 For the period January 1 to September 31, 2020 3,450,000…
Required information (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: 2021 2022 2023 Cost incurred during the year $2,016,000 $2,808,000 $2,613,000 Estimated costs to complete as of year-end 5,184,000 2,376000 0 Billings during the year 2,180,000 2,644,000 5,176,000 Cash collections during the year 1,890,000 2,500,000…
need correct and complete answer with explanation , computation , steps in text form please provide explanation and computation clearly for each steps answer in text form
Please give working notes and proper explanation of solution
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: 2021 2022 2023 Cost incurred during the year $ 2,640,000 $ 2,300,000 $ 2,926,000 Estimated costs to complete as of year-end 6,160,000 2,660,000 0 Billings during the year 2,080,000 2,860,000 5,060,000 Cash collections during the year 1,840,000 2,800,000 5,360,000 Westgate recognizes revenue over time according to percentage of completion. 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.)
On January 1, 2026, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2027. Expenditures on the project were as follows: During 2026: January 31 March 1 June 30 October 1 During 2027: January 31 April 30 August 31 $1,000,000 600,000 800,000 600,000 270,000 585,000 900,000 On January 1, 2026, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2026 and 2027. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2026 and 2027. Interest is paid annually on all debt. The company's financial year-end is December 31. Required: 1. Calculate the amount of interest that Mason should capitalize in 2026 and 2027. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will…
Hansaben