what is the CIP as of 2021?
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8 what is the CIP as of 2021?
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- 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 liabilityDuring 2019, Gulf Co. started a construction project with a total contract price of $3,500,000. Additional information is given below: 2019 2020 Actual costs incurred during the S1,350,000 S1,525,000 year Estimated remaining costs Billings to customers Collected from customers 1,350,000 1,200,000 2,300,000 1,000,000 2,400,000 What amount of gross profit should be recognized in 2020?LMAO Company uses percentage of completion method in accounting for its long-term contracts. During 2019, it started work on a P10,000,000 project. At that time, LMAO estimated that it would take 3-4 years to complete the project. In 2019, the outcome of the project cannot be estimated reliably but in 2020, LMAO was already certain the project is estimated to cost P8,000,000. As of December 31, 2019, costs incurred amounts to P3,175,000. This amount includes P200,000 costs of materials stored in the warehouse intended for the next stage of construction the following year. The engineers' estimate of construction costs at completion is P8,500,000. LMAO billed the client 30% of the contract price and collected the same amount. In 2020, LMAO incurred P3,575,000 more and billed the customer P3,300,000. At the end of the year, the estimated cost to complete is still P2,250,000. How much is the Gross Income in 2020?*
- On February 1, 2020, Mar Contractors agreed to construct a building at a contract price of $15,400,000. Mar initially estimated total construction costs would be $12,000,000 and the project would be finished in 2023. Information relating to the costs and billings for this contract during 2020-2022 is as follows: Total costs incurred during the year Estimated costs to complete Customer billings to date Collections to date 2020 4,500,000 7,500,000 6,600,000 6,000,000 2021 5,300,000 4,200,000 12,000,000 10,500,000 2022 4,000,000 1,800,000 13,800,000 13,500,000 a. Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract and all the necessary journal entries for the years ended December 31, 2020, 2021, and 2022. b. Using the cost-recovery method, prepare schedules to compute the profit or loss to be recognized as a result of this contract all the necessary journal entries to record the costs,…The total contract price of the project is P 1,200,000. This was constructed as follows: Year Cost for the year Completion as of the year 2016 P 432,000 60% 2017 P 184,250 85% 2018 P 103,750 100% The net income to be reported in 2018 under percentage of completion is –ABC Construction Company began operations in 2020. Construction activity for the first year is shown below. All contracts are with different customers and any work remaining at December 31, 2020 is expected to be completed in 2021. Project Contract Price Billings Collections Actual Costs Additional cost to complete 1 5,600,000 3,600,000 3,400,000 4,500,000 1,125,000 2 6,700,000 2,200,000 2,100,000 1,260,000 5,040,000 3 5,200,000 5,200,000 4,935,125 3,800,000 0 The company uses the percentage of completion method in accounting for its projects. A. The amount of current asset/ liability reported for the projects in the year-end balance sheet is? B. The net profit or loss reported by ABC in its income statement for 2020 is?
- Integrity Corporation started work on a construction contract in 2021. The contract price is P40M. However, if the cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost escalations on the contracts are probable as to recovery. Additional information on the contract is shown below: 2022 $18,000,000 6,000,000 26% Cost incurred to date Estimated cost to complete Cumulative inflation rate How much is realized profit in 2022? 2021 P9,600,000 14,400,000 18%Hh1. In 2020, Solid Construction Co. (SCC) began work on a two-year fixed-price contract project. SCC uses the percentage-of-completion method to account for such projects and provides you with the following information (dollars in millions): ACCOUNT RECEIVABLE (FROM CONSTRUCTION BILLINGS) $37.5 ACTUAL CONSTRUCTION COSTS INCURRED IN 2020 $135 CASH COLLECTED ON PROJECT DURING 2020 $105 CONSTRUCTION IN PROGRESS, 12/31/2020 $207 ESTIMATED PERCENTAGE OF COMPLETION DURING 2020 60% How much cash remains to be collected by SCC on the project?Deen Construction began a construction project in 2018. The contract price was $1,250,000, and theestimated costs were $1,000,000. Data for each year of the contract are as follows:2018 2019 2020Costs incurred during the year $250,000 $600,000 $190,000Estimated costs to complete 750,000 212,500 -0-Partial billings 375,000 500,000 375,000Collections 187,500 469,000 593,500Instructions:1. Assuming Deen the percentage of completion method:(a) Prepare a schedule that computes the gross profit for 2018 - 2020(b) Determine the net amount for construction in progress inventory should be reported on the2018 balance sheet.(c) Prepare all the necessary journal entries for 20192. Compute the amount of gross profit to be recognized each year, assuming the completed contractmethod is used.
- ABC Construction Company began operations in 2020. Construction activity for the first year is shown below. All contracts are with different customers and any work remaining at December 31, 2020 is expected to be completed in 2021. Project Contract Price Billings Collections Actual Costs Additional cost to complete 1 5,600,000 3,600,000 3,400,000 4,500,000 1,125,000 2 6,700,000 2,200,000 2,100,000 1,260,000 5,040,000 3 5,200,000 5,200,000 4,935,125 3,800,000 0 The company uses the percentage of completion method in accounting for its projects. A. The amount of construction cost recognized for Project 1 at the 2020 year – end is? B. The amount of accounts receivable reported by ABC in the year- end balance sheet is? C. The amount of inventory reported for the projects in the year- end balance sheet is?National Construction agreed to construct a building for Berninger Corp with construction beginning on March 15, 2020. The project's contract price is $5,910,000, and National Construction estimates total construction costs would be $4,088,000. The project is scheduled to finish in 2022. Information relating to the costs and billings for this contract is as follows: 2020 2021 2022 Total costs incurred to date $1,533,000 $2,706,000 $4,655,000 Estimated costs to complete 2,555,000 1,804,000 -0- Customer billings to date 2,310,000 4,088,000 5,710,000 Collections to date 2,110,000 3,610,000 5,610,000 How much gross profit should be recorded for 2020, 2021, and 2022? Assuming National Construction uses the percentage-of-completion method of accounting for long-term contracts?Suppose that a contract is started on January 1, 2018, with an estimated completion date of December 31, 2019. The final contract price is P1,500,000. In the first year covering January 1 to December 31, 2018: Cost incurred amounted to P600,000. Half the work on the contract was completed. Certificates of work completed have been issued to the value of P750,000. It is estimated with reasonable certainty that further costs to completion in 2019 will be P600,000. Requirements: 1. The contract is certified at what percentage of completion? 2. At Dec 31, 2018, the entity will recognize how much profit? 3. At Dec 31, 2018, the entity will recognize how much contract asset?