Salmania Co. began working on a project on August 2019, to construct a BD8,250,000 bridge that is expected to be completed in October 2020, at an estimated cost of BD6,000,000. At the end of 2019, the costs to date were BD2,400,000 and the estimated total costs to complete had not changed. The progress billings during 2019 were BD1,600,000 and the cash

Salmania Co. began working on a project on August 2019, to construct a BD8,250,000 bridge that is expected to be completed in October 2020, at an estimated cost of BD6,000,000. At the end of 2019, the costs to date were BD2,400,000 and the estimated total costs to complete had not changed. The progress billings during 2019 were BD1,600,000 and the cash

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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Cardinal Construction Company had a contract starting April 2020, to construct a P9,000,000 building that is expected to be completed in September 2022, at an estimated cost of P8,250,000. At the end of 2020, the costs to date were P3,795,000 and the estimated total costs to complete had not changed. The progress billings during 2020 were P1,800,000 and the cash collected during 2020 was 1,200,000. For the year ended December 31, 2020, Cardinal would recognize gross profit on the building of:
Suneilert Construction Company had a contract starting April 2021, to construct a P15,000,000 building that is expected to be completed in September 2022, at an estimated cost of P13,750,000. At the end of 2021, the costs to date were P6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were P3,000,000 and the cash collected during 2021 was P2,000,000. Suneilert uses the percentage-of-completion method.For the year ended December 31, 2021, Suneilert would recognize gross profit on the building of?
Moonlight Construction Company had a contract starting April 2020, to construct a P9,000,000 building that is expected to be completed in September 2022, at an estimated cost of P8,250,000. At the end of 2020, the costs to date were P3,795,000 and the estimated total costs to complete had not changed. The progress billings during 2020 were P1,800,000 and the cash collected during 2020 was 1,200,000. At December 31, 2020 Moonlight would report Construction in Process in the amount of:
Alert Construction Company had a contract starting April 2021, to construct a $15,000,000 building that is expected to be completed in September 2022, at an estimated cost of $13,750,000. At the end of 2021, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3,000,000 and the cash collected during 2021 was $2,000,000. Alert uses the percentage-of-completion method. What amount would Alert report for Construction in Process at December 31, 2021?
How much is the Gross Profit/Loss Realized in 2018? Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project: 2017 2018 2019 Costs incurred to date 2160,000 4,500,000 7,520,000 Estimated cost to complete Progress Billings to date Cash Collections for the year 6,840,000 5,500,000 1,880,000 2304,000 4,320,000 7,680,000 1,728,000 3,240,000 5,760,000
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
Manama Construction Company had a contract starting April 2021, to construct a €24,000,000 building that is expected to be completed in September 2023. At the end of 2021, the costs to date were €10,120,000 and the estimated total costs to complete €11,880,000. The progress billings during 2021 were €4,800,000 and the cash collected during 2021 was €3,200,000. Manama uses the percentage-of-completion method. At December 31, 2021 Manama would report Balance of Billings and Construction in Process (inventory) of: A. € 6,240,000 O B. €10,120,000 OC. €11,040,000 OD. € 4,800,000
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8. How much is the Gross Profit/Loss Realized in 2018? * Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project 2017 2018 2019 Costs inenered to dnte Estimsted cost to complete Progess Billings to dnte Cash Collectiona for the year 2160,000 4,500,000 7,520,000 6840,000 5,500,000 1,690, 000 2,304,000 4,320,000 7,680,000 1,728.000 3,240,000 5,760,000 9. How much is the Gross Profit/Loss Realized in 2019? * Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 10,200,000 10,200,000 9,800,000 8,760,000…
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2018 and completed in 2019. Cost and other data are presented below: 2018 2019 $ 450,000 $1,100,000 1,050,000 Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year 0 400,000 1,400,000 300,000 1,500,000 Requirements: a. Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Compute the amount of gross profit recognized during 2018 and 2019 b. Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Prepare all journal entries to record costs, billings, collections, and profit recognition. c. Assume that Beavis recognizes revenue upon completion of the project. Compute the amount of gross profit recognized during 2018 and 2019. d. Assume that Beavis recognizes revenue upon completion of the…
Years 2023 2024 2025 Gross Profit (or Loss) recognized Gross profit Gross loss Gross profit million million million
Build a Bridge Inc. prepares its financial statements in accordance with IFRS. The company started work on a contract in May 2023 to build a small bridge at a fixed price of $10,000,000. The bridge was to be completed by September 2025 at a total estimated cost of $8,000,000. Total cumulative costs incurred by the end of December 2023 and 2024 were $2,000,000 and $5,500,000, respectively. Because of cost overruns in 2024, it is now expected that the project will cost $800,000 more than originally estimated. Final costs at the end of the project totalled $9,000,000. Required Determine the amount of gross profit to be recognized for the years ending December 31, 2023 and 2024. First calculate the percent complete on December 31, 2023. The percent complete on December 31, 2023 is %.