On January 1, 2022, Affable Co. contracted with a contractor to construct a building for P20,000,000. The entity is required to make five payments in 2022 with the last payment scheduled on the date of completion. The building was completed on December 31, 2022. The entity made the following payments during 2022: January 1 P 2,000,000 March 31 4,000,000 June 30 6,100,000 September 30 4,400,000 December 31 3,500,000 20,000,000 The entity had the following debt outstanding on December 31, 2022: 8,500,000 12% 4-year note dated January 1, 2022, with interest compounded quarterly, both principal and interest due December 31, 2025, relating specifically to the building project. Round off future value factors to four (4) decimal places (e.g., 6.6667)
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- On 1 January 2020, Entity A contracted with Entity B to construct a residential building for $20,000,000 on a piece of land that Entity A had already purchased years earlier. The construction was started on 1 January 2020.Entity A was to make five payments in 2020, with the last payment scheduled for the date of completion.The building was completed on 31 December 2020.Entity A made the following payments during 2020: 1 January 2020 $2,000,000 1 April 2020 $4,000,000 30 June 2020 $6,100,000 30 September 2020 $4,400,000 1 December 2020 $3,500,000 Entity A had the following debt outstanding on 31 December 2020: 12%, 2-year long-term debt of $7,500,000 which was borrowed on 1 July 2019. It is specifically related to the residential building project on 1 January 2020. The fund is re-invested and earns interest at a rate of 6.00% per annum. 8%, 10-year long-term debt of $6,000,000 which was borrowed on 31 March 2016. 10%, 5-year long-term…Pharoah Construction entered into a contract to construct a bridge for a contract price of $2.95 million. Construction began in 2019 and was completed in 2021. Below are the details of the transactions related to the contract: 2019 2020 2021 Costs incurred during the year $649,000 $836,000 $693,900 Estimated costs to complete 1,427,800 515,000 0 Calculate the revenue, expenses and gross profit to be recognized each year using the percentage-of-completion method. (Round the percentage completion to 2 decimal places, e.g. 52.75% and other answers to 0 decimal places, e.g. 1,525.) 2019 2020 2021 Revenue $ $ $ Expenses Gross Profit $ $ $In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM's books: Progress Billings 2,000,000 Accounts Receivable 1,000,000 Construction in Progress 3,500,000 Costs incurred to date 2,800,000 For 2019, the balances are: Progress Billings 3,000,000 Accounts Receivable 1,200,000 Construction in Progress 6,500,000 Costs incurred to date 5,500,000 WHAT IS THE PERCENTAGE OF COMPLETION IN 2019? (ANSWER IT IN A PERCENTAGE FORM) Show the solution in a good accounting form. Thank you!
- Blossom Construction, which follows ASPE entered into a contract to construct a bridge for a contract price of $2.3 million. Construction began in 2022 and was completed in 2024. Below are the details of the transactions related to the contract: Costs incurred during the year Estimated costs to complete Revenue Expenses Gross Profit Calculate the gross profit to be recognized each year using the completed-contract method. $ 2022 $661,000 $822,000 1,519,000 705,000 2023 2022 2024 $685,900 0 2023 $ 2024On January 1, 2021, Gemini Company contracted with a contractor to construct a building for P20,000,000. The entity is required to make five payments in 2021 with the last payment scheduled on the date of completion. The building was completed on December 31, 2021. The entity made the following payments during 2021: January 1 - 2,000,000 March 31 - 4,000,000 June 30 - 6,100,000 September 30 - 4,400,000 December 31 - 3,500,000 The entity had the following debt outstanding on December 31, 2021: 12% 4-year note dated January 1, 2021, with interest compounded quarterly, both principal and interest due December 31, 2024, relating specifically to the building project. The future value of 1 at 3% for 4 periods is 1.1255 - 8,500,000 10% 10-year note dated December 31, 2020 with simple interest payable annually on December 31 - 6,000,000 12%…In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM’s books: Progress Billings P2,000,000; Accounts Receivable P1,000,000; Construction in Progress P3,500,000, Costs incurred to date P2,800,000. For 2019, the balances are Progress Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000, Costs incurred to date 5,500,000. What is the percentage of completion in 2019? PLEASE PROVIDE THE ANSWER WITH COMPLETE SOLUTION WRITTEN IN GOOD ACCOUNTING FORM.
- In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM's books: Progress Billings P2,000,000; Accounts Receivable P1,000,000; Construction in Progress P3,500,000, Costs incurred to date P2,800,000. For 2019, the balances are Progress Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000, Costs incurred to date 5,500,000. What is the percentage of completion in 2019? (Answer format: 1%, 20%, 50%)In 2018, SM Residences entered into a 3-year agreement in to construct a condominium project for a contract price of P10,000,000. SM recognizes construction contract under the percentage of completion method. For the year ended 2018, the following balances were found in SM’s books: Progress Billings P2,000,000; Accounts Receivable P1,000,000; Construction in Progress P3,500,000, Costs incurred to date P2,800,000. For 2019, the balances are Progress Billings P3,000,000; Accounts Receivable P1,200,000; Construction in Progress P6,500,000, Costs incurred to date 5,500,000. What is the percentage of completion in 2019?On January 1, 2019, XYZ Company contracted Y Construction Co. to construct a building for $2,800,000 on land costing $200,000 (purchased from the contractor and included in the first payment). XYZ made the following payments to the construction company during 2019.January 1 420,000March 1 600,000May 1 1,080,000December 31 900,000Y Construction completed the building, ready for occupancy, on December 31, 2019. XYZ had the following debt outstanding at December 31, 2019.Specific Construction Debt1. 1,500,000, 15%, 3-year note to finance purchase of land and construction of the building, dated December 31, 2018, with interest payable annually on December 31Other Debt2. 1,100,000, 10%, 5-year note payable, dated December 31, 2015, with interest payable annually on December 313. 1,200,000, 12%, 10-year bonds issued December 31, 2014, with interest payable annually on December 31Instruction:Record the necessary journal entries for…
- Concord Corp. contracted to construct a building for $729000. Construction began in 2023 and was completed in 2024. Data relating to the contract follow: Costs incurred Estimated costs to complete Year Ended December 31 O $112642 and $74358. O $133122 and $53878. O $423000 and $306000. O $0 and $236000. 2023 $306000 202000 2024 $236000 Concord uses the percentage-of-completion method. For the calendar years 2023 and 2024, respectively, Concord should report gross profit ofDPWH had the following transactions related to a construction project of school building worth P28,000,000 during the year 2021:January 25. Payment of mobilization fee equivalent to 15% of the contract price.March 10. Received 1st progress billing from the contractor equivalent to 40% completion of contract price.March 25. Paid the amount due to the contractor for the 1st progress billing. Deductions are: Recoupment of advances based on % of completion (deducted upon payment) Retention, 5% of the billings Withholding taxes (EWT & Final VAT) The entry to recognize the payment of mobilization fee includes a: a. Debit to Advances to Contractors, P4,200,000 b. Debit to Advances to Officers and Employees, P4,200,000 c. Debit to Accounts Receivable, P4,200,000 d. Debit to Advances to SDO, P4,200,000In 2025, Sunland Construction Corp. began construction work under a 3-year contract. The contract price was $1,090,000. Sunland uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2025, are shown below. Balance Sheet Accounts receivable Construction in process Less: Billings Costs and recognized profit in excess of billings Income Statement $16,600 $62,500 58,000 4,500 Income (before tax) on the contract recognized in 2025 (a) Your answer is correct. How much cash was collected in 2025 on this contract? (b) Portion of contract billings collected $ eTextbook and Media * Your answer is incorrect. $20,000 41400 What was the initial estimated total income before tax on this contract? Income before tax on this contract $ 4500 Attempts: 2 of 15 used