20. On Jan. 1, 2019, the Luzviminda Company, a private entity has agreed to construct and operate an expressway on behalf of the national government. The construction cost is P900,000,000 (from the stand-
Q: 3. On May 10, 2019, GUAVA Company received a grant of P8,000,000 from the British Government for the…
A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On January 1, 2020, Optimistic Company was granted by a local government authority 5,000 hectares of…
A: A government grant seems to be a monetary reward or a piece of land granted by the federal, state,…
Q: Indiana Co. began a construction project in 2021 with a contract price of $160 million to be…
A: Calculate the gross profit recognized in 2021. Working note: Calculate the percentage of…
Q: On January 1, 2022, the Spartan Equipment Company began construction of a building to be used as its…
A:
Q: On January 1, 2023, the Balmond Company began construction of a building to be used as its office…
A: Weighted-Average accumulated expenditure and interest capitalized Year 2023: Date Amount…
Q: On December 10, 2020 the Elm Street project was completed and the contractor for the project…
A: Journal entries in Street improvement fund Date Particulars Debit Credit December 10 Reserve…
Q: displayed below.) In 2021, the Westgate Construction Company entered into a contract to construct a…
A: Solution 5: Computation of revenue and gross profit for given situation is as under:
Q: On January 1, 2022, Annibelle Company received a grant of P9,000,000 from the foreign government in…
A: Government grants are grants received by the company from government in monetary form, where these…
Q: 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: On May 10, 2019, GUAVA Company received a grant of ₱8,000,000 from the British Government for the…
A: Solution: The whole amount of 10000000 because when on May 10, 2019, the amount 8000000 was a…
Q: ed into a contract agreement with the government to construct and edifice for a total contract…
A: Given: Total contract price= P25,000,000 government paid= P10,000,000 withheld 5% vat
Q: 21) On January 1. 2021, Nola Company received a grant of P50 million from a foreign government for…
A: Lets understand the basics. As per IAS 20 "Accounting for government grant", when any grant is…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Take your gross sales revenue for the accounting period and subtract discounts, allowances and…
Q: Indiana Co. began a construction project in 2021 with a contract price of $150 million to be…
A: Indiana Co. began a construction project in 2021 with a contract price of $150 million to be…
Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…
A: Gross profit is the difference between the total revenues and cost of goods sold. The financial…
Q: Magna Corporation is provided a grant by a foreigner government for the purpose of acquiring land…
A: 1) Computation:
Q: Magna Corporation is provided a grant by a foreigner government for the purpose of acquiring land…
A: As per IAS 20: "Accounting for Government Grants and Disclosure of Government Assistance" The…
Q: heir customers for $1,200,000, and collected $960,000. At December 31,2019, the estimated future…
A: Revenue recognition may be defined as a principle that says that revenue will be recorded in books…
Q: 17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in…
A: Solution Concept As per the provision of PAS 20 , The grant received to compensate for its cost…
Q: February 1, 2021, Arrow Construction Company entered into a three-year construction.contract to…
A: "Since you have asked multiple sub part question we will solve the first three sub part question for…
Q: Early in 2019, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete…
A: We have the following information: $1,700,000 of 10-year, 9% bonds payable, issued at par on May…
Q: On January 1, 2020, San Juan Builders Inc. accepted a long-term construction project to build a…
A: SOLUTION- CONSTRUCTION CONTRACT IS A MUTUAL OR LEGALLY BINDING AGREEMENT BETWEEN TWO PARTIES BASED…
Q: Diamond Construction which has a calendar year end, has entered into a non-cancellable fixed priced…
A: Calculation for percentage of completion 2019 2020 2021 Cost incurred upto date (A) 1,850,000…
Q: Indiana Co. began a construction project in 2021 with a contract price of $162 million to be…
A: In case of percentage of completion method, revenue is recognized over duration of contract based on…
Q: 3. On May 10, 2019, GUAVA Company received a grant of ₱8,000,000 from the British Government for the…
A: On 10.05.2019, GUAVA company received a grant from British government = P8000000 This grant is…
Q: On January 1, 2020, San Juan Builders Inc. accepted a long-term construction project to build a…
A: Construction Contract: A construction contract is a legal agreement between a customer and a general…
Q: On Jan. 1, 2020, the entity started the preparation of its building construction. On the same date,…
A: The question is on IAS 23- Borrowing cost IAS 23 Borrowing Costs requires that borrowing costs…
Q: n 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: The question is based on the concept of Financial Accounting. Construction contracts are the…
Q: On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building…
A: Total debt =Construction Loan + Value of Long Term Notes=$3,000,000 + $4,200,000 +…
Q: On January 1, 2021 the national government provided a grant to Brgy ACYFA2 amounting to 24,000,000…
A: Depreciation: It is the reduction in the value of assets due to its continuous use of assets or its…
Q: Indiana Co. began a construction project in 2018 with a contract price of $162 million to be…
A: Cost Accounting- It is branch of that ascertains cost associated with the production of certain…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Percentage of completion is one of the method of recognition of revenue of a construction contract.…
Q: On January 1, 2015, MERKS Company received a grant of P25,000,000 form the American government in…
A: Expenditures are the total expenses incurred by the firm during an accounting period. It includes…
Q: To encourage entities to expand their operations in a specified development zone, where it is…
A: The accrual concept is one of the key concepts in accounting and it is based on the belief that the…
Q: What amount of interest is capitalized for 2023? 2,940,000 4,200,000 1,260,000 1,200,000
A: Answer: The interest to be capitalized is the part of interest to be increased in total value of…
Q: I need last two requirement, 3a, 3b On February 1, 2021, Arrow Construction Company entered into a…
A: SOLUTION- PARTIAL BALANCE SHEET IS A FINANCIAL INSTRUMENT THAT IS USE TO VISUALIZE THE LIST OF TOTAL…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Contract costing: Contract costing is that form of specific order costing that applies where work is…
Q: On January 1, 2022, Charis Company adopted a plan anuary 1, 2026 at an estimated cost of P20,000,000…
A: In this question, we have to find out the annual deposit to the fund.
Q: On June 15. 2021, Sanderson Construction entered into a long-term construction contract to build a…
A: The question is based on the concept of Financial Accounting.
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: In order to make journal entries, first, need to calculate the net revenue and gross profit:
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Solution: Under percentage of completion method of revenue recognition for long term construction…
Q: Colorado Construction Co., a private company that reports under ASPE, was contracted by a provincial…
A:
Q: On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to…
A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…
Q: The following three situations involve the capitalization of interest. Situation I: On January 1,…
A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…
Q: 8. AYALA LAND,INC. began work on a P70 million contract in 2019 to construct an office building.…
A:
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Journal entries refers to the systematic documentation of the financial transactions of a company in…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Requirement 1 2021 2022 2023 Revenue $0 $0 $10,000,000…
Q: Rona Co. had 9% P2,000,000 specific construction loan and 12% P15,000,000 general loan outstanding…
A: Cost of an asset is the expenditure incurred on it from purchasing or constructing to the point it…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Given that: Contract Price = $10,000,000 Road was completed in 2023.
HELP ME WITH SUPPORTING COMPUTATION THANK YOU
HOW MUCH IS THE NET INCOME IN 2020?
Step by step
Solved in 2 steps
- 3. On May 10, 2019, GUAVA Company received a grant of ₱8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of ₱10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government?On January 1, 2019, Munich Co. received a grant of P10,000,000 from the government of USA for the construction of a building that will be used as a laboratory and research facility with an estimated cost of P15,000,000 and useful life of 10 years. The facility was completed on January 1, 2020. How much is the balance of deferred income from government grant on December 31, 2020 under the gross method (deferred income approach)?On January 1, 2022, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from the government grant should be recognized in 2022? A. 9,000,000 В. 1,500,000 С. 3,000,000 D. 4,500,000
- ZEN Ltd signs a contract on 30 June 2019, agreeing to build a bridge for XYN at a contract price of $20 million. XYN will be in control of the asset throughout the construction process. ZEN estimates that construction costs will be as follows: Year Ending 30th June 2020 Cost $ 5,000,000 $ 8,000,000 $ 3,000,000 $16,000,000 30th June 2021 30th June 2022 Total The contract provides that XYN will make payments on 30 June of each year as follows: $ 4,000,000 $ 10,000,000 $ 6,000,000 $20,000,000 2020 2021 2022 Total The contract is completed as expected on 30 June 2022. Assume that actual costs and cash collections with expectations and that cost (an input measure) is used as the basis for assessing progress on the car contract. Required: (a) Calculate the income and gross profit recognised each year 2020, 2021, 2022. (b) Prepare the journal entries for the year ended 30th June 2020.On 1 January 2020, Entity A contracted with Entity B to construct a residential building for $20,000,000 on a piece of land that Entity A had already purchased years earlier. The construction was started on 1 January 2020.Entity A was to make five payments in 2020, with the last payment scheduled for the date of completion.The building was completed on 31 December 2020.Entity A made the following payments during 2020: 1 January 2020 $2,000,000 1 April 2020 $4,000,000 30 June 2020 $6,100,000 30 September 2020 $4,400,000 1 December 2020 $3,500,000 Entity A had the following debt outstanding on 31 December 2020: 12%, 2-year long-term debt of $7,500,000 which was borrowed on 1 July 2019. It is specifically related to the residential building project on 1 January 2020. The fund is re-invested and earns interest at a rate of 6.00% per annum. 8%, 10-year long-term debt of $6,000,000 which was borrowed on 31 March 2016. 10%, 5-year long-term…On January 1, 2021, Annibelle Company received a grant of P9,000,000 from the foreign government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over three years, respectively, P1,000,000, P2,000,000 and P3,000,000. What income from the government grant should be recognized in 2021?
- Industrial Development Corporation (IDC) granted Naseer Pty(Ltd) R20 000 on 01 January 2021 to assist in thepurchase of a manufacturing plant.The grant was conditional upon Naseer Pty(Ltd) purchasing the plant and manufacturing for a period of atleast two unbroken years. If the conditions of the grant were not met, the terms of the grant required that thegrant be repaid in full, immediately.The plant was purchased on 3rd January 2021 for R200 000 and was depreciated on the straight-line basisover its useful life of 4 years to a nil residual value.Other information:- Naseer ceased manufacturing on 31 March 2022 due to unforeseen circumstances.- The asset was not considered to be impaired and Naseer intended to resume manufacturing on thenext year. - Ignore the effect of tax and VAT.- Assume that Naseer Pty(Ltd) recognises grants as grant income.- The year end is 31 December Required:a) Show the journal entries relating to the grant for the year ended 31 December 2021 and up until…ZEN Ltd signs a contract on 30 June 2019, agreeing to build a bridge for XYN at a contract price of $20 million. XYN will be in control of the asset throughout the construction process. ZEN estimates that construction costs will be as follows:Year Ending Cost30th June 2020 $ 5,000,00030th June 2021 $ 8,000,00030th June 2022 $ 3,000,000Total $16,000,000The contract provides that XYN will make payments on 30 June of each year as follows:2020 $ 4,000,0002021 $ 10,000,0002022 $ 6,000,000Total $20,000,000The contract is completed as expected on 30 June 2022. Assume that actual costs and cash collections with expectations and that cost (an input measure) is used as the basis for assessing progress on the car contract.Required:(a) Calculate the income and gross profit recognised each year 2020, 2021, 2022.(b) Prepare the journal entries for the year ended 30th June 2020Sandhill Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.8 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses $ Gross Profit $ 2022 2022 $637,000 1,489,000 $844,000 Calculate the gross profit to be recognized each year using the completed-contract method. 2023 $ $ 713,000 2024 $715,900 2023 0 $ $ 2024 SUPPORT
- On January 1, 2021, Super Balut Co. establishes a branch for an initial cash investment of P10,000,000. The subsequent transactions are as follows: a. On January 3, 2021, the home office acquires land and building to be used by the branch for a total cost of P30,000,000. The branch records the assets in its books. The fair value of the land is P11,000,000, while the fair value of the building is P22,000,000. The building has an estimated useful life of 20 years and no residual value. The company uses the straight-line method of depreciation. b. On February 14, 2021, the home office transfers inventory worth P20,000,000 to the branch. The home office pays freight of P500,000. c. On March 1, 2021, the home office transfers additional inventory worth P5,000,000 to the branch. This time the branch pays the freight of P100,000. d. On March 31, 2021, the branch acquires equipment for P900,000 cash. The equipment will be carried in the home office’s books. The equipment has a useful life of…Pharoah Construction entered into a contract to construct a bridge for a contract price of $2.95 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract: 2019 2020 2021 Costs incurred during the year $649,000 $836,000 $693,900 Estimated costs to complete 1,427,800 515,000 0 Calculate the revenue, expenses and gross profit to be recognized each year using the percentage-of-completion method. (Round the percentage completion to 2 decimal places, e.g. 52.75% and other answers to 0 decimal places, e.g. 1,525.) 2019 2020 2021 Revenue $ $ $ Expenses Gross Profit $ $ $18. On January 1, 2020 Ebasan Company took out a 12% P10,000,000 loan to finance the construction of a building. The key dates are as follows: Jan 1: Loan Interest relating to the project starts to be incurred Feb 1: Technical site planning commences Mar 1: Expenditures on the project start to be incurred Apr 1: Construction work commences Nov 1: Substantially all of the activities necessary to prepare the asset for its intended use are complete Dec 1: Building brought into use What amount of interest should Ebasan capitalize for the current year? A. 1,200,000 B. 1,000,000 C. 900,000 D. 800,000