Quick Construction Company builds bridges and uses the percentage of completion method. Data on its latest bridge project shows the following: Total amount of contract awarded for building the bridge = $17,400 Estimated costs to build the bridge are $10,000 The following cost pattern was incurred in the 3 months to build the bridge (20% in month 1, 30% in month 2 and 50% in month 3). Payment is due 40 days after receiving the certification that a certain percentage has been completed by month end. Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the first month? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the second month? $ Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the third month? $

Quick Construction Company builds bridges and uses the percentage of completion method. Data on its latest bridge project shows the following: Total amount of contract awarded for building the bridge = $17,400 Estimated costs to build the bridge are $10,000 The following cost pattern was incurred in the 3 months to build the bridge (20% in month 1, 30% in month 2 and 50% in month 3). Payment is due 40 days after receiving the certification that a certain percentage has been completed by month end. Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the first month? $ Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the second month? $ Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the third month? $

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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Quick Construction Company builds bridges and uses the percentage of completion method. Data on its latest bridge project shows the following. Total amount of contract awarded for butting the bridge =$27,000 Estimated costs to bulid the bridge are $10,000. The following cost pattern was incurred in the 3 months to build the bridge (20% in month 1, 30% in month 2 and 50% in month 3 ) Payment is due 40 days after receiving the certification that a certain percentage has been completed by month end Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the first month? $ Required 2 Assuming no other transaction happened, what is the balance of accounts receivables at the end of the second month? 3. Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the third month?
JUBAIL BUILDERS is constructing a multi-unit residential complex. In the prior year, JUBAIL BUILDERS entered into a contract with a customer for a specific unit that is under construction. JUBAIL has determined that the contract is a single performance obligation satisfied over time. JUBAIL BUILDERS gathered the following information for the contract during the year. JUBAIL BUILDERS-Year Ended December 31, 2018: Costs to date 10,500,000 Future expected costs 7,000,000 Work certified to date 12,600,000 Expected Sales value 22,400,000 Revenue taken in earlier period 8,400,000 Costs taken in earlier periods 6,650,000 Calculate the amounts to be included in the statement of profit or loss in respect of revenue and costs for the year ended December 31, 2018 on both methods (I) Input Method (cost basis), and (II) Output Method (Sales Basis) Calculate the total expected profit for the year 2018?
Ube Construction Company has consistently used the percentage of completion. On January 10, 2007, Ube began work on a P 6,000,000 construction contract. At the inception date, the estimated cost of construction was P 4,500,000. The following relate to the progress of the contract: Income recognized at 12/31/2007 P 600,000 Costs incurred 1/10/2007 through 12/31/2008 3,600,000 Estimated cost to complete at 12/31/2008 1,200,000 How much income should Ube recognize for the year ended December 31, 2001? P 300,000 P 525,000 P 600,000 P 900,000
Shepard Construction Company has consistently used the percentage-of-completion method. On January 10, 2008, Shepard began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000. The following data relate to the progress of the contract: Income recognized on December 31, 2008 P 300,000Cost incurred, January 10, 2008 through December 31, 2009 1,800,000Estimated cost to complete at December 31, 2009 600,000 How much income should Shepard recognized for the year ended December 31, 2009 a. 150,000b. 262,000c. 300,000d. 450,000
Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. In 2018, it incurs cost of $5,325,000. At December 31, 2019, Seasons Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $18,000,000 due to unanticipated price increases. What is the cost that Seasons has incurred during the year ended December 31, 2019? Group of answer choices $7,875,000 $8,175,000 $7,987,500 $13,500,000
A quantity of steel in the amount of $423,000.0 is needed for a project, payment due (from contractor to steel fabricator) at the project begin date. The steel is expected to be erected in Month 2 and Month 3, with billing at the end of these months and subsequent payment from the owner (to the contractor) at the end of Month 3 and Month 4. Assume half the the payment occurs at the end of Month 3 and the other half at the end of Month 4. Using an annual interest rate of 18%, which is a monthly interest rate of 1.5%, to finance the purchase with a short-term line of credit loan, determine the total interest accumulated for this steel purchase until payment is received (from the owner).
Blossom Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1450000 each quarter. The total contract price is $18492000 and Blossom estimates total costs of $17650000. Blossom estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. At December 31, 2018, Blossom estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue from Long- Term Contracts recognized for 2018 and what is the balance in the Accounts Receivable account assuming Cannon Company has not yet made its last quarterly payment? Revenue $6164000 $5547600 $5295000 $5295000 O Option A Option B O Option C Accounts Receivable $6164000 $1450000 $1450000 $6164000
A quantity of steel in the amount of $423,000.0 is needed for a project, payment due (from contractor to steel fabricator) at the project begin date. The steel is expected to be erected in Month 2 and Month 3, with billing at the end of these months and subsequent payment from the owner (to the contractor) at the end of Month 3 and Month 4. Assume half the the payment occurs at the end of Month 3 and the other half at the end of Month 4. Using an annual interest rate of 18%, which is a monthly interest rate of 1.5%, to finance the purchase with a short-term line of credit loan, determine the total interest accumulated for this steel purchase until payment is received (from the owner) Please do fast .... ASAP .. fast...
Star Construction Corporation has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,850,000. Construction commenced on 4 February 20×5. Actual costs were in line with estimated costs for 20×5 and 20×6. In 20×7, actual costs exceeded estimated costs by $150,000. Total construction costs incurred in each year were as follows: 20X5: $2,700,00020X6: $4,500,00020X7: $1,800,000 Progress billings based on the amount of work completed were collected each year. Star Construction uses the percentage-of-completion method. The percentage-of-completion is based on costs incurred compared with estimated total costs of the project. Company also billed the client and collected the following payments Year Billings Payments Received 20X5: $2,300,000 $2,100,000 20X6: $4,900,000 $4,700,000 20X7: $3,750,000 $4,150,000…
Bridgenorth has undertaken a $5 million contract to repair a railway tunnel. The contract was signed on 1 April 20X8 and the work is expected to take two years. This is a contract where performance obligations are satisfied over time and progress in satisfying performance obligations is to be measured according to % of work completed as certified by a surveyor. Bridgenorth has an enforceable right to payment for performance completed to date. At 31 December 20X9 the details of the contract were as follows: 20X9 20X8 $ $ Total contract value 5,000,000 5,000,000 Costs to date 3,600,000 2,300,000 Estimated costs to completion 700,000 2,100,000 Work invoiced to date 3,000,000 2,000,000 Cash received to date 2,400,000 1,500,000 % certified complete 75% 40% What is the profit recognised for the year ended 31 December 20X8?
On January 1, 2011, DMCI Inc. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably, and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year 12/31/2011 12/31/2012 12/31/2013 Costs incurred during the year? ? P1,500,000 P3,740,000 Realized gross profit/(loss) during the year Percentage of completion as of the end of the year 37.5% P750,000 (P250,000) (P800,000) 50% 80% What is the balance of Construction in Progress on DMCI Inc.'s Statement of Financial Position on December 31,2013?
Consider the construction of 9-week foundation activity with the operation cost broken down into the following elements: - Labor 1600 $ paid 400 $ weekly. - Equipments 3500 $ paid 500 $ weekly after 5 weeks - Materials 1200 $ paid 200 $ weekly after 5 weeks - Subcontractors 1500 $ paid 300 $ weekly after 3 weeks Determine the expenses (cash out) of this activity. Assume any missing data