4 Coin Ltd was contracted to build a bridge for Victorian government for $30,000,000. Payment of three$10,000,000 instalments were due and paid on June 30 of each year. The expected and actual costs at the endof each year are detailed as follows:YearExpectedActual20215,000,0005,000,00020227,500,0008,500,00020236,000,0006,000,000Total18,500,00019,500,000Note: The outcome the project can be measured reliably.RequiredCompute the percentage of completion, gross profit and revenue to be recognised for ecach of the three yearsrespectively according to AASB15 Revenue from Contracts with Customers, assuming that the outcome ofthe contract can be reliably estimated.

AASB15 Revenue from contracts with customers is also applicable for construction contracts. The main…

Required Compute the percentage of completion, gross profit and revenue to be recognised for each of the three years respectively according to AASBI5 Revenue from Contracts with Customers, assuming that the outcome of the contract can be reliably estimated.

Required Compute the percentage of completion, gross profit and revenue to be recognised for each of the three years respectively according to AASBI5 Revenue from Contracts with Customers, assuming that the outcome of the contract can be reliably estimated.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Butrico Manufacturing Corporation uses a standard cost system, records materials price variances whe...

A: Answer - Direct Materials Price Variance - Direct material price variance is the difference betwee...

Q: QUESTION 2 Anzalna now needs RM20,000 to start from a bank for 3 years at 6.8% bank discount rate. f...

A: solution Question 2 has been solved as per your requirement given Present value needed 20000 ...

Q: ! Required information Use the following information to answer questions. (Algo) [The following info...

A: 1. DIRECT LABOR USED : = TOTAL FACTORY PAYROLL - INDIRECT LABOR = $250,000 - $57,500 = $192,500 ...

Q: For each transaction, (1) analyze the transaction using the accounting equation, (2) record the tran...

A: Bookkeeping: Bookkeeping alludes to the most common way of checking the monetary exchanges of an ass...

Q: QS 2-6 Analyzing transactions and preparing journal entries LO P1 For each transaction, (1) analyze ...

A: The accounting equation states that assets equal to sum of liabilities and equity. The journal entri...

Q: Required information Problem 3-3A (Statie) Preparing adjusting entrles, odjusted trlal balance, and ...

A: 1. Ledgers - Ledgers are the tabular form of representing accounts. Accounts are represented in the ...

Q: Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when ...

A: Introduction:- The capital account tracks the net flow of investment into an economy. It is one of t...

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

A: solution given cash flow diagram Year Cash flow Beginning of year 1 200 Beginning of...

Q: 1. What is the carrying amount of the biological assets on December 31? а. 3,160,000 b. 2,350,000 c...

A: Biological Assets Biological assets which is described as living assets such as trees, animals etc. ...

Q: Why continuous auditing is growing in popularity

A: A continuous audit is one : where the auditor or his staff is constantly engaged in checking the ac...

Q: During the year, a company purchased raw materials of $77,320, and incurred direct cost. These are t...

A: Calculation of Cost of materials used in production Beginning Raw materials Inventory $17,433 ...

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

A: solution given cash flow diagram Year Cash flow Beginning of year 1 200 Beginning of...

Q: Your Fan retails computer fans in two sizes: small and large. The business has provided you with the...

A: Contribution Margin = Sales - Variable Cost Notes: Since you have posted a question with multiple ...

Q: Net operating income $34,875 Required: 1. Compute payback period of the truck. Is the investment in ...

A: The question is related to Capital Budgeting. The Net Present Value is calculated with the help of f...

Q: Q5- Amber Manufacturing provided the following information for last month: $20,000 6,000 9,000 Opera...

A: “Since you have asked multiple question, we will solve the first question for you. If you want any s...

Q: he company could save $6,000 per year in engineering costs by purchasing a new machine. The new mach...

A: Given, rate = 9% year = 12 periodic payment = $6000

Q: Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average Inv...

A: Formula: Capital Turnover = Sales Revenue/Average Investment

Q: Bonita Company sells tablet PCs combined with Internet service, which permits the tablet to connect ...

A: Journal entry is used to record a business during an accounting year showing double-entry accounting...

Q: P6-1. Compute for the price earnings ratio if the earnings per share is Php5.50: Market Value per sh...

A: P:E Ratio = Market value per share / Earnings per share where, Earnings per share = (Net income - Pr...

Q: Problem 13-9 (IAA) At year-end, a storm surge damaged the warehouse of Braveheart Company. The entir...

A: Cost of goods sold is actual cost of goods that is being sold to the customers. It includes beginnin...

Q: P6-6. Ancient Times Corp., a closed corporation and selling its shares to ar investor. The statement...

A: 1. EBITDA = Net income + Income tax + Interest + Depreciation + Amortization Given: Net Income = P22...

Q: The following are selected budgeted data for Green Company for the coming year: Budgeted sales ₱60...

A: Breakeven point is point at which no profit no loss, means total cost is equal to total revenue. For...

Q: 4) An asset was purchased for P100,000 and would retire at the end of 15 years with a salvage value ...

A: The following image shows the calculation of capitalized cost of asset :

Q: The following information is available to reconcile Branch Company’s book balance of cash with its b...

A: Bank reconciliation statements are referred as a statement which is made by the company/organisation...

Q: Cash Payback Method This method identifies how long it will take (in years) to recover the initial i...

A: Pay Back period refers to that in how many years is required to get the initial investment will be b...

Q: Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. R...

A: As per our protocol we provide solution to the one question only but you have asked multiple questio...

Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,540 in...

Q: /12 In the final settlement, how much would D receive?4 26 a. P651,250 b. P368,000 c. P815,750 d. P6...

A: Joint venture can be described as a business arrangement between two individuals or two parties who ...

Q: E19.12 (LO 1) (Deferred Tax Asset) Callaway SA has a deferred tax asset account with a balance of €1...

A: Calculation of Temporary difference for 2022: Temporary difference = 500,000 – 375,000 = 125,000

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of ath

A: Present value = Annuity amount x present value of annuity due at $ 1 at 4% for 3 years Present value...

Q: 7. ABC Co. provided you the following information for the purpose of determining the amount of its i...

A: solution concept Goods in transit , FOB shipping point is inventory of buyer Goods in transit , FOB ...

Q: SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wire...

A: Perpetual inventory system or method for inventory/stock method which records the sale and purchase ...

Q: Ey Freezer accepts a ote is for 180 days a 30 at 9%. Find the pr

A: To compute the net proceeds it is required to compute the maturity value.

Q: ust Time Which of the following is most likely to be true? O a. An existing CEO facing removal is li...

A: Earnings management is a strategy exclusively used by the CEO to deliberately manipulate the earning...

Q: Exercise 16-17 (Algo) Weighted average: Production cost report LO P2 Oslo Company produces large qua...

A: Equivalent unit express in terms of number of partially completed unit has smaller unit that is full...

Q: Factory Overhead account shows total debits of $684,000 and total credits of $708,000 at the enc e u...

A: Factory overhead, also known as manufacturing overhead, work overhead, or factory burden in American...

Q: Walsh & Coggins, a professional accounting firm, collects cost information about the services they p...

A: Cost Data It is important to collect required cost information which are pertained with the business...

Q: grow 7% per year. Callahan's common stock currently sells for $29.75 per share; its last dividend wa...

A: Discounted cash flow method is used to determine the cost of equity by using future cash flows. This...

Q: The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaini...

A: An intangible asset is one which cannot be touched or seen and do not have any physical appearance o...

Q: On July 16, 2020, Logan acquires land and a building for $500,000 to use in his sole proprietorship....

A: The adjusted basis for land and building at the acquisition date is Land : $100,000 Building : $400,...

Q: APPLY THE CONCEPTS: Internal rate of return The Sutherland purchasing department has made revisions ...

A: Internal Rate of Return- Internal rate of return refers to the rate at which the net present value o...

Q: Prepare budgetary entries, using general ledger control accounts only, for each of the following unr...

A: The question is based on the concept of Financial Accounting.

Q: Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equal...

Q: Required information Use the following information for the Exercises below. (Algo) 1 [The following ...

Q: Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture....

A: Predetermined overhead rate refers to the rate which is determined at the beginning of accounting pe...

Q: Lebron Co. manufactures product X with the following standard costs: Direct materials, 20 yards @ ₱...

A: Given data, Standard price of material (SP)=P13.50 Production during may=500 units Therefore, Standa...

Q: On December 31, 2021 what is the adjusted cash in bank? In an audit of Danao Company on Dec. 31, 202...

A: Answer - Adjusted Book Balance - A bank reconciliation is a schedule each company prepares to re...

Q: Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to Indivduals w...

A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred b...

Q: Average Rate of Return The average rate of return is another method that does not use present value ...

A: Solution Concept Formulas used Net income =income – expenses Average net income =total ...

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Coin Ltd was contracted to build a bridge for Victorian government for $30,000,000. Payment of three
$10,000,000 instalments were due and paid on June 30 of each year. The expected and actual costs at the end
of each year are detailed as follows:
Year
Expected
Actual
2021
5,000,000
5,000,000
2022
7,500,000
8,500,000
2023
6,000,000
6,000,000
Total
18,500,000
19,500,000
Note: The outcome the project can be measured reliably.
Required
Compute the percentage of completion, gross profit and revenue to be recognised for ecach of the three years
respectively according to AASB15 Revenue from Contracts with Customers, assuming that the outcome of
the contract can be reliably estimated.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Egay Construction Corporation contracted with the province of Pampanga to construct a bridge at a contract price of P16,000,000. Egay Corporation expects to earn P1,520,000 on the contract. The percentage of completion method is to be used and the completion stage is to be determined by estimates made by the engineer. The following schedule 'summarizes the activities of the contract for years x0-x2. Estimate Cost to Cost Year Incurred х0 P4,600,000 4,500,000 5,250,000 xl x2 Engineer's Estimate of Complete P9,640,000 5,100,000 -0- x0 a. P545,600; b. P545,600; Billings Completion 31% 71 58% 100% 60 *A 10% retainer accounts for the difference collections. between billings and br Under the percentage of completion method, using the engineer's estimate as the measure of completion to be applied to revenues and costs, how much is the gross profit earned each year?id x1 x2 P 498,400; P 606,000 P1,044,000; c. P1,760,000; P6,400,000; d. P1,760,000; P1,800,000; Collection on Contract on Billings…
Paul Constructions has entered into a contract beginning January 1, 2020, to build a pool. It has been estimated that the pool will cost P300,000, and will take three years to construct. The pool will be billed to the purchasing at P450,000. The following data pertain to the construction period. 2020 135,000 165,000 2021 210,000 90,000 2022 0 Cost to date: Estimated cost to complete. Progress billing to date. Cash collected to date 135.000 120.000 275.000 250,000 450,000 450.000 During 2020, Costs incurred include P15,000 standard materials stored at the site to be used in 2022 to complete the project. Using the percentage of completion method, compute the recognize gross profit for 2022: a. 52,500 b. 45,000 c. 97.500 d. 150,000 2. The CIP net of Progress billing is a. 27.500 current liability b. 32,500 current asset c. 167,500 current asset. d. 102,500 current liability
A steel mill estimates that one of its furnace will require maintenance of P20, 000.00 at the end of year 2, P40, 000.00 at the end of year 4 and P80, 000.00 at the end of year 8. What uniform semi-annual amounts could it set aside over the next eight years at the end of each period to meet these requirements of maintenance cost if all the funds would earn interest at the rate of 6% per year compounded semi-annually?
ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?
An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows: 1styear = P 15, 000 2ndyear = P 17, 000 3rdyear =P 19, 000 4thyear = P 21, 000 5thyear = P 23, 000 How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.
The company will have to allocate funds to net working capital (NWC) for parts inventories equivalent to 8% of annual sales, spent in year 1 and sold off in last year at the end of the project. Determine the amount of NWC that will be allocated
Narayna Construction Corporation was contracted to build a new retail complex in a small town in northern Saskatchewan for $6,375,000. Construction activities are summarized below by year: Costs incurred during the year Estimated cost to complete Required: 1. Prepare the journal entries for revenue recognition for each year. 2. Calculate the gross margin for each year on the contract. 20X2 1,700,000 3,400,000 20X3 1,785,000 3,017,500 20X4 3,060,000 O
Maintenance expenses for a bridge on the Ohio River are estimated to be $20,000 per year for the first 8 years, followed by two separate $100,000 expenditures in years 12 and 18. The expected life of the bridge is 30 years. If i = 6% per year, what is the equivalent uniform annual expense over the entire 30- year period?
Use the following information for the next three questions: In 20x1, Friedland Co. entered into a contract with a customer for the construction of a building. The contract price is a fixed fee of P12,000,000. Information on the contract is shown below: 20x1 20x2 Costs incurred per year Estimated costs to complete 3,920,000 5,080,000 5,880,000 1,000,000
Maintenance expenses for a bridge on the Ohio River are estimated to be $20,000 per year for the first eight years, followed by two separate $100,000 expenditures in years 12 and 18. The expected life of the bridge is 30 years. If i= 6% per year, what is the equivalent uniform annual expense over the entire 30-year period?
On December 31 Y1, the Company ARL develop a Product: Master 3D. The disbursement associate to the Product are the following: Research $6,000,000 and Development $4,000,000. The criteria have been met for recognition of the development costs as an asset. Product Master D will be in the market in Year 2 and is expected to marketable for 5 years. Total sales of the product are estimated at $100,000,000. Instructions: Using IAS 38, determine the effect of the Research & Development costs have on Company’s Net Income. Answer the following questions. 1. Choose one and explain Net Income using IFRS will be in Year 1: a. Higher by $________ larger than U.S. GAAP income. b. Lower by $________ larger than U.S. GAAP income. c. Both will be the same. 2. Explanation: 3. Year 3 (ending balance) Determine the Book Value of the asset 4. Explanation: Show you computations.
A project has a first cost of S120,000 and an estimated salvage value of $20,000 at the end of 25 years. Estimated average annual receipts are 527,900. Estimated average annual disbursements for everything except income taxes are 515,060. Estimated average annual disbursements for income taxes are 54,420. Assuming that annual receipts and disbursements will be uniform throughout the 25 years, analyze the above data and compute internal rate of return. Comment whether this project is viable if the Bank offer an interest rate of 8% on loan.