Using the percentage of completion method of accounting, what amount would Sonex show as either a net current asset or a net current liability as of the end of Year 2 due to its construction activity?
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- UN LOUIS ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?P ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?Athena Co. started work on an P8M fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 20x3 Costs incurred per year 2,850,000 3,670,000 1,600,000 Estimated costs to complete 4,275,000 1,630,000 - Requirement: Compute for the amounts recognized in profit or loss in 20x1, 20x2, 20x3, respectively.
- Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, the following information: In thousand pesos: Project A Project B Contract Price P 4,800 860 20x4: Costs incurred P 3,400 Percent completed 75% 20x5: Costs incurred P 1,250 140 Percent Completed 25% 15% Using the percentage-of-completion (over time) method of revenue recognition, gross profit on Project A to be recognized in 20x4 would be: a. P 200,000 ] b. P 300,000ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 Costs incurred per year 2,850,000 3,670,000 Estimated costs to complete 4,275,000 1,630,000 How much profit (loss) is recognized in 20x2?Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, thefollowing information: In thousand: Project A Project B Contract price 4,800 860 20x4: Costs incurred 3,400 Percent completed 75% 20x5: Costs incurred 1,250 140 Percent completed 25% 15% Using the percentage-of-completion (overtime) method of revenue recognition, gross profit on Project Ato be recognized in 20x4 would be:
- Kiner, Inc. began work in 20x4 on a contract for $8,400,000. Other data are as follows: 20x4 20x5Costs incurred to date $3,600,000 $5,600,000Estimated costs to complete 2,400,000 —Billings during the year 2,800,000 8,400,000Collections to year 2,000,000 7,200,000 1. If kiner uses the cost recovery method (point in time), the gross profit to be recognized in 20x5 is? 2. If Kiner uses the percentage-of-completion (over time) method, the gross profit to be recognized in 20x4 is?2 During 20xl, Cord Builders, Inc. started work on a P9,000.00 fixed-price construction contract. Cord appropriately uses the percentage-of-completion method in accounting for the contract. Cord's accounting records disclosed the following 20x1 20x2 Cumulative contract costs incurred 6.300,000 8,100,000 3,900,000 Estimated total costs at completion 7,800,000 How much are the revenue and cost of construction recognized 20x2, respectively? a. 2,220,000; 2,150,000 b. 2,520,000; 2,400,000 (AICPA-Adapted) c. 2,520,000; 2,420,000 d. 2,500,000; 2,400,00015. In 20x1, Espresso Co. started work on a long-term construction contract. Espresso Co. accumulates costs and recognized profits using the Information on the contract is as follows: "Construction in progress" account. 20x1 20x2 Accounts receivable, ending balances Costs incurred each year 250,000 750,000 262,500 480,000 Construction in progress, ending balances Progress billings, cumulative balances 305,000 910,000 250,000 1,050,000 Espresso bills the customer based on the project's stage of completion, which is computed using the costs incurred. How much are the profit, revenue and total collections in 20x2, respectively? a. 125,000; 605,000; 300,000 b. 149,000; 640,000; 326,000 c. 50,000; 242,000; 120,000 d. 150,000; 620,000; 300,000
- The Heart Co. has just completed a 4-year contract to which the following relate: Labor and Materials costs 1,800,000 Machinery Cost Initial Design Costs Disposal proceeds of machinery 50,000 600,000 100,000 According to IFRS 15, What are the total contract cost?ABC Co. started work on two separate projects during 20x1. Information on these projects is shown below: NIVS Project Contract price Costs incurred A B 9,000,000 8,000,000 APIE 4,000,000 5,000,000 ERST Estimated costs to complete 4,000,000 Progress billings 5,000,000 8,000,000 What amount is presented in ABC Co's. statement of financial position as contract liability? 191113. In 20x1, Light Co. started work on a construction contract with a fixed price of P4,000,000. Light Co. uses the percentage of completion method and measures its progress based on assessment of the physical completion of the project. The estimated total contract costs were P3,000,000. Information on the project is as follows: 20x1 20x2 1,125,000 90% 1,425,000 Costs incurred per year Physical completion of project 32% How much are the revenue and cost of construction recognized in 20x2? Revenue Cost of construction 1,740,000 a. 2,320,000 b. 2,220,000 1,560,000 1,650,000 C. 2,200,000 d. 2,390,000 1,850,000