Pls provide complete solutions for both. Thank you. Use the following information for the next three questions:In 20x1, Friedland Co. entered into a contract with a customer forthe construction of a building. The contract price is a fixed fee ofP12,000,000. Information on the contract is shown below:20x120x2Costs incurred per yearEstimated costs to complete3,920,0005,080,0005,880,0001,000,000 4 The performance obligation is satisfied over time. However,Friedland Co. cannot reasonably measure the outcome of theperformance obligation but expects to recover all contractCáedland Co. cannot reasonably measure the outcome of thenerformance obligation but expects to recover all contractosts incurred. How much are the gross profit, revenue andcost of construction recognized in 20x2, respectively?Gross profitRevenueCost of constructiona. 0b. 03,920,0003,920,0005,080,0005,080,000d. (420,000)5. At contract inception, Friedland Co. assessed the contract inaccordance with the principles of PFRS 15 and concludes thatit has a single performance obligation that is satisfied at apoint in time, which is when the construction is completedand legal title over the constructed building is transferred tothe customer. How much are the gross profit, revenue andcost of construction recognized in 20x2, respectively?Gross profitRevenue Cost of constructionа. 0b. 03,920,0003,920,000C. 02,400,0002,400,000d. (420,000)for the

As it cannot be reasonably measure the outcome of the performance obligation but expects to recover…

4 The performance obligation is satisfied over time. However, performance obligation but expects to recover all contract Friedland Co. cannot reasonably measure the outcome of the Cáedland Co. cannot reasonably measure the outcome of the nerformance obligation but expects to recover all contract sts incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit Revenue Cost of construction a. 0 b. 0 3,920,000 3,920,000 5,080,000 5,080,000 d. (420,000)

4 The performance obligation is satisfied over time. However, performance obligation but expects to recover all contract Friedland Co. cannot reasonably measure the outcome of the Cáedland Co. cannot reasonably measure the outcome of the nerformance obligation but expects to recover all contract sts incurred. How much are the gross profit, revenue and cost of construction recognized in 20x2, respectively? Gross profit Revenue Cost of construction a. 0 b. 0 3,920,000 3,920,000 5,080,000 5,080,000 d. (420,000)

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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Use the following information for the next two questions: Bass Co. appropriately uses the cost-to-cost method in measuring construction contract with a customer. its progress on Information on this contract, which was completed in 20x3, is a shown below: 20x1 20x2 20x3 20,000,000 20,000,000 20,000,000 Transaction price Profit each year Costs incurred each year (200,000) 8,200,000 400,000 1,400,000 3,600,000 (AICPA - Adapted) 1. 10. How much are the contract costs incurred in 20x2? a. 5,800,000 b. 6,200,000 c. 6,600,000 d. 10,200,000 11. How much are the estimated additional costs to complete as of December 31, 20x2? a. 5,400,000 b. 6,800,000 c. 7,200,000 d. 8,600,000
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In 20x1, ABC Co. enters into a contract to construct a building for a customer. ABC identifies its performance obligation to be satisfied over time. ABC measures its progress on the contract based on costs incurred. The contract price is P20,000,000. ABC has an unconditional right to all billings made in accordance with the billing schedule stated in the contract. Information on the construction is as follows: 20x1 20x2 20x3 Contract costs incurred per year Billings per year Collections on billings per year 1,920,000 3,000,000 5,650,000 3,850,000 8,160,000 7,320,000 10,000,000 500,000 6600,000 Estimated costs to complete (at each year-end) from the Student Ha8,840,000 1,720,000 ons, quizzes rection with any academic work, abetting of the same: 1st violation How much profit is recognized on the contract in 20x3?
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