25. R&R Construction Limited supplies for April 2024 was: • Construction services $500,000 (exempt VAT activity) • Electrical services $2,000,000 • Surveying services $300,000 • Export services$700,000 The VAT rate is 15% Material for construction work - $15,000 Material for electrical services - $52,500 Material for surveying services - $ 22,500 Purchase of staff uniform $4,950 The Net VAT Payable a. 250,050 b. 270,000 c. 325,050 d. 430,050

25. R&R Construction Limited supplies for April 2024 was: • Construction services $500,000 (exempt VAT activity) • Electrical services $2,000,000 • Surveying services $300,000 • Export services$700,000 The VAT rate is 15% Material for construction work - $15,000 Material for electrical services - $52,500 Material for surveying services - $ 22,500 Purchase of staff uniform $4,950 The Net VAT Payable a. 250,050 b. 270,000 c. 325,050 d. 430,050

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.6P: Standards for nonmanufacturing expenses The Radiology Department provides imaging services for...

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Gomez, Inc. began work in 2022 on contract #3814, which provided for a contract price of $19,200,000. Other details follow: 2022 2023 Costs incurred during the year $3,200,000 $9,800,000 Estimated costs to complete, as of December 31 9,600,000 0 Billings during the year 3,600,000 14,400,000 Collections during the year 2,400,000 15,600,000 Assume that Gomez uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2022 is a. $1,200,000.00 b. $1,600,000.00 c. $4,800,000.00 d. $6,400,000.00 Assume that Gomez uses the percentage-of-completion method of accounting. The portion of the total revenue to be recognized in 2022 is a. $1,200,000.00 b. $1,600,000.00 c. $4,800,000.00 d. $6,400,000.00 Now assume that Gomez uses the…
Brooksville Construction began a construction project in 20x5. The contract price was P1,250,000, and the estimated costs were P1,000,000. Data for each year of the contract are as follows: 20x5 20x6 20x7 Costs incurred during the year P 250,000 P 600,000 P 190,000 Estimated costs to complete 750,000 212,500 -0- Partial billings 375,000 500,000 375,000 Collections 187,500 469,000 593,500 Assuming Brooksville uses the percentage-of-completion method of revenue recognition, determine: What is the balance of Construction in Progress at the end of 20x5.
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 316,000 $ 1,700,000 Estimated costs to complete as of 12/31 1,264,000 0 Billings during the year 400,000 1,660,000 Cash collections during the year 290,000 1,770,000 Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time.
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 376,000 $ 2,265,000 Estimated costs to complete as of 12/31 1,504,000 0 Billings during the year 535,000 1,810,000 Cash collections during the year 500,000 1,845,000 Question: Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming this project does not qualify for revenue recognition over time.
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 2021 2022 Costs incurred during the year $ 356,000 $ 2,135,000 Estimated costs to complete as of 12/31 1,424,000 0 Billings during the year 475,000 1,760,000 Cash collections during the year 415,000 1,820,000 Required:1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion.2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does not qualify for revenue recognition over time.3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Nortel recognizes revenue over time according to…
SMDC Construction signed a contract to build a building over a period 3 years for a price of P10,000,000. Information relating to the performance of the contract is summarized as follows: 2017 2018 2019 contribution costs incurred during the year 2,500,000 2,400,000 1,800,000 estimated costs to complete 4,500,000 1,800,000 - buildings during the year 2,200,000 2,800,000 5,000,000 collections during the year 2,000,000 2,500,000 5,500,000 Prepare the entries under the percentage of completion.
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.7. Realized gross profit in 20x2 _____________8. The balance of "Contract Liability" at the end of 20x2 _____________9. Revenue that should be recognized in 20x3 _____________10. Realized gross profit in 20x3
55 On March 1, 2022, ABC Co. was contracted to construct a building for a customer at a total contract price of P16,500,000. The building was estimated to be completed in 2024. The following data were made available: 2022 2023 2024 Contract costs incurred P6,400,000 P5,200,000 P2,900,000 Estimated costs to complete 6,400,000 2,900,000 - Progress billings each year 6,400,000 7,000,000 3,100,000 How much is the realized gross profit for 2024?
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.4. Balance of "Contract Liability" at the end of 20x1 _____________5. Percentage of completion for 20x2 _____________6. Revenue that should be recognized in 20x2 _____________
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.1. Percentage of completion for 20x1 _____________2. Revenue that should be recognized in 20x1 _____________3. Realized gross profit in 20x1 _____________4. Balance of "Contract Liability" at the end of 20x1 _____________
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,860,000. The project began in 2021 and was completed in 2022 Data relating to the contract are summarized below: 2021 $ 372,000 $1,899,00e 1,488,eee 524,000 318,eee 2022 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2,336,800 2,542, 000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time occording to percentege of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 ssuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented ot the end of 2021 assuming Nortel recognizes revenue over time according to percentege of completion. 4. Prepare a partial…
Based on Exercise 18-33 During 2020, Blue Company started a construction job with a contract price of $1,580,000. The job was completed in 2022. The following information is available. 2020 2021 2022 Costs incurred to date $383,800 $807,380 $1,070,000 Estimated costs to complete 626,200 298,620 -0- Billings to date 297,000 895,000 1,580,000 Collections to date 271,000 807,000 1,433,000 Instructions: 1. Complete a chart in Excel analyzing the above information showing revenue, the % of completion every year and the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. 2. Prepare all necessary journal entries for 2020, 2021, and 2022. 3. Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.