Friar Co. signed a government construction contract providing for a formula price of actual cost plus 10%. In addition, Friar was to receive one- half of any savings resulting from the formula's price being less than the target of Ph 2.2 million. Friar's actual costs incurred were PH 1,920,000. How much should Friar receive from the contract? Ph 2,060,000 Ph 2,112,000 O Ph 2,156,000 Ph 2,200,000
Q: Answer with example
A: CVP analysis is a relationship between Cost Volume and Profit. This relationship shows the relations...
Q: AA Company maintained cash in bank at Lunar Bank. This account is used for disbursement to various s...
A: Introduction cash is a liquid asset and legal tender that is used to exchange of goods ,services an...
Q: OU from eldest brother of Jon Listed stocks held as temporam Payroll account Petty Cash fund (net of...
A:
Q: Using ABC, the total manufacturing costs for product Regular is:
A: Overhead cost per activity = Total overhead cost for the activity / No. of activity
Q: Condensed financial data of Novak Company for 2020 and 2019 are presented below. NOVAK COMPANY COM...
A: NOVAK COMPANY Cash Flow Statement (Indirect Method) For the year ended December 31, 2020 Cash ...
Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Ma...
A: Budgeted Overhead: The quantum of upward expense that is planned to be caused during a period of int...
Q: Question: Do you think there is an ideal mix of debt and equity across corporations? Elaborate your ...
A: In the current financial structure where we have 60% Debt and 40% . We understand the accounting eq...
Q: Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2019, Susan...
A: Premium tax credit refers to the refundable tax credit that is depicted for helping the eligible ind...
Q: The unit costs per EUP computed under weighted average were as follows: Materials, P 7 ...
A: Solution: Equivalent units of materials and transferred in = Units completed and transferred to next...
Q: hat certain adjustments had either been overlook or improperly recorded at the end of years to 2020....
A: Explanations 1. prepaid expenses ia balance sheet item, it will not affect profit or loss a/c 2. une...
Q: Under the CASH basis, service Fees to be reported by Lady G for the year 2021 amounts to
A: Beauty Shop of Lady G 31.12.20 31.12.21 Prepaid Expenses 25000 18000 Accru...
Q: Buffalo Limited has the following information available regarding its share capital at December 31, ...
A: The dividend represents the distribution of proot among the shareholders of the company. It is consi...
Q: Present the journal entries for the following dates/transactions. May1,2007—Inception of futures co...
A: Sl No Account head Debit Credit 1. No entry 2. Unrealized Loss 2,000.00 ...
Q: 1986 $10,000 18% 1987–1997 10,000 20,000 1,800 20 10,000 1998 20,000 40,000 3,800 22 20,000 40,000 6...
A: The answer is stated below:
Q: On January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated depreciation of ...
A: INITIAL RECOGNITION AS ON 1 JANUARY,2022 (PART OF WORKING) CASH FLOWS (I) PVF @8% (II) I * II ...
Q: Doris company has the following information for the year March 2021: selling, general and admin expe...
A: Operating income is computed to identify the amount of profit that an organisation earned after incu...
Q: Assume the following: XYZ Engineering Supplies Company had the following transactions (Please, use t...
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit t...
Q: The following accounts with debit balances are induded on the year end trial balance of Dak, Inc Pre...
A: Advertising expense applicable to future periods is $ 3,000. It means out of prepaid advertising ($...
Q: SONA Co. received an order for 1,000 units of item AY-14. Because of the order’s exacting specifica...
A: Sales order 1000 units Material P140 per unit Labour P200 per unit Factory overhead 80% of labour. ...
Q: AA Company had a unadjusted cash balance in its cash in BB Bank as of December 31, 2022 of P2,500,00...
A: Working: Amount (P) Reason / Explanation Unadjusted Cash balance per books on Dec 31, 2022...
Q: transactions for Buyer and Seller wilmington Co. sold merchandise to Angelleti Co. on account, $158,...
A: To keep track of the financial transactions, journal entries are utilized. Your journal entries are ...
Q: If you invest $2000 at 12% annual interest rate, compounded weekly, how much would you have after 5 ...
A: The formula to be used is future value of a single payment
Q: No deductions shall be allowed where the transaction is between “related taxpayers” under Sec. 36(B)...
A: Solution Concept As per the provision of the Tax Code The interest expense in not allowed for deduct...
Q: r spoilage P180 Final inspection revealed that 600 bags were sp
A: Cost of production(COP) refers to material, labours and overheads incurred during production.
Q: Stmt of Income Stockholders Balance Sheet Statement Equity Prepare a classified balance sheet as of ...
A: Calculation of Profit PARTICULAR AMOUNT Service Revenue 505,000 Salaries expense (40...
Q: Gr Canr
A: The total inventory value is given below:
Q: Rita Company buys merchandise on account from Linus Company. The selling price of the goods is $900,...
A: Journal entry in the books of buyer and seller are as follows
Q: Problem 1 On Jan. 1, 2020, Aldama Company has a note payable to bank in the amount of Transactions d...
A: Notes payable refers to a written promise to pay a certain amount of money in the future to the lend...
Q: Explain the Rules for Journalising Transactions
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: yan Roque Steel Company manufactures steel products. During the current period, an order or 30,000 u...
A: The question is related to Process Costing. The cost of good units to be calculated with the help of...
Q: Practice 2.9 - Record journal entries in the general journal for Catalina Corp. 8/1 8/2 8/3 8/4 8/5 ...
A: Journal entries :- A Journal entry records a business transaction in the accounting records of a bus...
Q: Integrity Company uses standard costing for each specialized product. The following information is ...
A: When direct materials are purchased, their cost is debited to Raw Materials inventory and the follow...
Q: Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhe...
A: In the manufacturing or service industries, direct labor is labor that is assigned to a specific pro...
Q: BES.1 (LO 1), AP The following are the components in determining cost of goods sold. Determine the m...
A: Cost of Goods Available for Sale=Beginning Inventory+PurchasesCost of Goods Sold=Cost of Goods Avail...
Q: In 2020, Windsor Corporation reported a net loss of $69,800. Windsor’s only net income adjustments w...
A: The net cash provided by operating activities can be calculated with the help of indirect method of ...
Q: Lampierre makes brass and gold frames. The company computed Brass Gold Units Planed 700 150 Material...
A: Calculation of allocation rate per unit in both traditional and activity based costing method are as...
Q: Problem 5. Mary Jane is the cashier of Chinita Girl Corporation. As representative of the Zarate and...
A: Petty Cash Book- The petty cash book is a recordation of paltry cash expenditures, sorted by time. I...
Q: Adequate disclosure in financial statements to meet the needs and purposes of their users is a means...
A: Financial statements are the reports that are to be prepared by the entity in order to disclose its ...
Q: Consider the situation below showing the weekly income tax of a single (civil status) employee in a ...
A: Given income tax is $1,980.18 From the given table we can observe that if income is more than $7,958...
Q: A. The firm normally maintains no deposit balances at Bank Lucas (Format: 11.11%) B. The firm normal...
A: Jasos industries Line of Credit with Bank at Bank Lucas $ 8,00,000.00 Term ...
Q: Need explanation for the answer
A:
Q: Hana has prepared the following list of statements about corporations. Identify each statement as tr...
A: When the owner and business both are treated as different persons known as separate legal entity.
Q: On January 1, there were two jobs in process at Worship Printing Company. Details of the jobs are: ...
A: Cost of work in process ending inventory in January will be the balance of job A-40 as it is still u...
Q: Is Share Dividends qualify as Revenue?
A: If the entity is in the business of buying and selling shares and securities then share dividends wi...
Q: Webb Company uses a job-order costing system and the following information is available from its rec...
A: Work in process inventory is that part of stock on which production has been started but not yet com...
Q: On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following c...
A: Introduction:- Inventory, often known as stock, refers to the things and supplies that a business re...
Q: FINANCIAL STATEMENTS AND TAXES Part I of this case, presented in Chapter 3, discussed the situation ...
A: As per rule, allowed to answer first three subparts and post the remaining in the next submission.
Q: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ...
A: calculation of missing figure are as follows.
Q: Miller Corp. purchased a new machine for its factory. The following lists shows the various expendit...
A: Note: Insurance costs incurred for the transit to the destination is only capitalized to the assets....
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000. During the first year, Naples incurred costs pf P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples Construction in Progress for this contract be reported at the end of the first year? a. P 35,000 b. 65,000GG Construction entered into a contract agreement with the government to construct and edifice for a total contract price of P25,000,000 in 2021. During December 2021, the government paid P10,000,000 of which it withheld 5% vat. How much is the output vat of the company on the government contract? P3,000,000 c. P1,200,000 P1,800,000 d. P0In 20x1, Salamagi Co. entered into a contract with a customer. The contract stipulates the following: Contract price of ₱20,000,000 5% mobilization fee due upon signing of the contract, to be deducted from the final billing 10% customer retention on all subsequent progress billings, to be paid to Salamagi on completion of the project. Salamagi Co. estimated a ₱5,000,000 gross profit from the project. The percentage of completion method will be used. In 20x1, Salamagi billed the customer for 50% completion of the project. The customer accepted all the billings, except one for 10% which was accepted on January of the following year. All the accepted billings were collected during the year except an 8% billing which was due January of the following year. What is the amount of profit recognized from the contract in 20x1? 2,500,000 c. 2,720,000 2,650,000 d. 2,900,000 What is the total amount of collections from the billings in 20x1? 5,760,000 c. 6,760,000 6,400,000 d.…
- Plucky Company recently entered into a contract in which Plucky charges a price of actual cost plus 20%. If the price charged based on this formula is less than the target price of $4,500,000, Plucky is entitled to also receive 50% of the difference between the actual cost and the cost that would lead to the formula price equalling the target price. Plucky incurred an actual cost of $3,600,000. How much will Plucky make from the contract? a) $4,320,000 b) $4,395,000 c) $4,410,000 d) $4,500,000 Pleae help me sir.. it's too difficultIn 20x1, ABC Co. was contracted to build a railroad. The contract price is equal to the total contract costs plus 25% thereof. However, if the project is completed within 4 years, ABC will receive an additional payment of 200,000. Information on the project is shown below: Costs incurred to date Estimated costs to complete 20x1 2,400,000 3,600,000 20x2 20x3 4,575,000 6,125,000 1,525,000 125,000 In 20x1 and 20x2, it was not highly profDIF25,000 that the project will be completed on time. However, in 20x3, ABC assessed that project will be completed earlier than originally expected and thus it is now highly probable that the incentive payment will be received. suspension with invalidation of grade, 3rd violation- suspension How much profit is recognized on the contract in 20x3? CMP 131Bella Pool Company sells prefabricated pools that cost P100,000 to customers for P180,000. The sales price includes an installation fee, which is valued at P25,000. The fair value of the pool is P160,000. The installation is considered a separate performance obligation and is expected to take 3months to complete. The transaction price is allocated to the pool and the installation is:a. P155,676 and P24,324 respectivelyb. P160,000 and P25,000 respectively Show complete solution
- Use the following information for the next three questions: In 20x1, Friedland Co. entered into a contract with a customer for the construction of a building. The contract price is a fixed fee of P12,000,000. Information on the contract is shown below: 20x1 20x2 Costs incurred per year Estimated costs to complete 3,920,000 5,080,000 5,880,000 1,000,000Eminem Company recognized gross profit of P720,000 on its long-term project which has accumulated costs of P2,880,000. To finish the project, the company estimates that it has to incur additional costs of P1,920,000. Determine the contract price.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.
- ABC Co. entered into a long-term construction contract for 3 years. Contract price agreed was P8,300,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract: Percentage of completion Estimated costs to complete How much is the costs of construction for 2022? O 7,920,000 Ⓒ6,240,000 O 8,957,500 O 6,467,500 2021 30% P 3,920,000 2022 82.5% P 1,680,00013. Plucky Company recently entered into a contract in which Plucky charges a price of actual cost plus 20%. If the price charged based on this formula is less than the target price of $4,500,000, Plucky is entitled to also receive 50% of the difference between the actual cost and the cost that would lead to the formula price equalling the target price. Plucky incurred an actual cost of $3,600,000. How much will Plucky make from the contract? a) $4,320,000b) $4,395,000c) $4,410,000d) $4,500,000Solve in Excel. Under contract, Rug Doctor will provide Value Markets with equipment and supplies on 1/2/2013. The equipment has a $655,000 fair market value; the supplies has a value of $110,000. Value Markets agrees to pay Rug Doctor $100,000 every three months over two years, 4/2/2013 to 10/2/2015. The rate to discount the cash flows is 8%. Calculate the total contract price (for revenue recognition).