Determine the expense and profit

Assignment Help Accounting Basics
Reference no: EM132594102

A contractor enters into a construction contract on January 1, 2019. The contractor agrees to a fixed price of P9,000 to build a building. The contractor's initial estimate of contract cost is P8,000. The contract expects that it will take three years to build the building.By the end of the first year of the contract (December 31, 2019), the contractor's estimate of total costs has increased to P8,050 (cost incurred in 2019 amounted to P2,093).In 2020 the customer and the contractor agreed to a variation resulting in an increase in contract revenue of P200 and estimated additional contract costs of P150. At the end of 2020, costs incurred of P4,075 include P100 paid for standard materials stored at the site to be used in 2021 to complete the project. The contractor determines the stage of completion of the contract by calculating the proportion that contract costs incurred for work performed to date to the latest estimated total contract costs.

Question 1: Determine the:

Expense for 2020

Profit for 2020. and

Revenue for 2019

Reference no: EM132594102

Questions Cloud

Find how much is the gross profit margin : Find How much is the gross profit margin? (enter your percentage as a decimal rounded to two decimal places. Example - enter 46% as .46)
Identify fundamental concepts of big data management : Identify fundamental concepts of Big Data management and analytics. Become competent in recognizing challenges faced by applications dealing with very large.
Calculate the book value on the December : Each truck was expected to last four years or 250,000 miles. Calculate the book value on the December 31, Year 3, balance sheet
How compare the views of management and accountants : How Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls
Determine the expense and profit : Determine the Expense for 2020 and Profit for 2020 and Revenue for 2019. he contractor agrees to a fixed price of P9,000 to build a building.
Analyze the influence of culture on attitudes : Analyze the influence of culture on attitudes, values, perceptions, behaviors, and interpersonal relations related to the selected population.
Describe the current business process : This week discuss a current business process in a specific industry. Note the following: The current business process itself. The industry the business process.
Define how gdss can increase some benefits of collaboration : Explain how GDSS can increase some benefits of collaboration and decision making in groups and eliminate or reduce some losses.
Working with ableism and lookism : What are the key factors that need to be addressed when working with clients impacted by ableism and lookism and What are some of the strengths and weaknesses

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computing an internal price index

Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2018

  Describe purpose and content of each of the given reports

Explain the purpose and content of each of these reports. Express your thoughts on other types of financial statement reports such as Qualified Opinions, Adverse Opinions, and Disclaimer of Opinions.

  In what ways have some of the approaches differed

Briefly describe some similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.

  Taxable stock dividend problem

Judd Harrison owns 200 shares of stock in the Widget Company for which he paid 1600 in 1999. The board of directors of the company decided to pay a 10% stock dividend in April 2010, for which Judd received 20 shares of stock. Was this a taxable st..

  What internal control internal control weakness led to case

What internal control internal control weakness led to this case of fraud. How the situation wasre solved or should have been resolved.

  What was the cash account balance after the transaction

Journalize the transactions. Number the journal page 1 and write the year at the top of the Date column. Describe each entry

  Prepare journal entries to record the events and transaction

Westin Watercraft's predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company's production activities during May 2011.

  Company and research the ethics of the company

1. Select a company and research the ethics of the company and the industry that it belongs to.

  Partial balance sheet-bonds and interest payable

Prepare a partial balance sheet showing the presentation of bonds and the interest payable at December 31, 2001

  Prepare the journal entry to record income tax expense

Wise Company began operations at the beginning of 2011. Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable

  Total factory labor costs transferred to work in process

Determine the total factory labor costs transferred to Work in Process and Factory Overhead for September. Determine the amount of factory overhead applied to production for September.

  Explaining the tax consequences

The plan lets the beneficiary of an employee who dies before pay- ments begin take the plan balance as an annuity or in a lump sum. Harvey elects to take the $250,000 plan balance in a lump sum. Write a letter to Harvey explaining the tax conseque..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd