Reference no: EM133047709
Questions -
Q1. On January 1, 2016, Bunny, a real state company, entered into a contract to construct a subdivision on a piece of land it as acquired, and when construction is complete, to deliver the finished houses to their customers. The following information pertains to the said contract each customers is to sign.
Each houses costs P4,000,000 each (a total of 10 houses are to be constructed)
Construction will take 2 years to complete
Payment terms are 50% by the end of the 1st year, 25% at the end of the 2nd year and the balance will be paid after 3 months from the final turn over.
The client can transfer the contract to another, should they not feel satisfied with the house on or before the house is 50% complete.
The company incurred the following expenses for 2016
Total cost of land - P2,000,000
Estimated total construction- P25,000,000 (including the costs of common areas and light posts amounting P5,000,000
Estimated total cost of contract of the 10 houses- P40,000,000
In CY 2016, total construction cost incurred amount to P13,000,000 with all common areas already fully constructed, while fair value of the land is now, worth P3,500,000. The contract to be a multiple contract.
The amount included as current asset in the financial statements of Bunny related to the above information is?
Q2. On January 1, 2016, Bunny, a real state company, entered into a contract to construct a subdivision on a piece of land it as acquired, and when construction is complete, to deliver the finished houses to their customers. The following information pertains to the said contract each customers is to sign.
Each houses costs P4,000,000 each (a total of 10 houses are to be constructed)
Construction will take 2 years to complete
Payment terms are 50% by the end of the 1st year, 25% at the end of the 2nd year and the balance will be paid after 3 months from the final turn over.
The client can transfer the contract to another, should they not feel satisfied with the house on or before the house is 50% complete.
The company incurred the following expenses for 2016
Total cost of land - P2,000,000
Estimated total construction- P25,000,000 (including the costs of common areas and light posts amounting P5,000,000
Estimated total cost of contract of the 10 houses- P40,000,000
In CY 2016, total construction cost incurred amount to P13,000,000 with all common areas already fully constructed, while fair value of the land is now, worth P3,500,000. The contract to be a multiple contract.
The Amount of revenue to be recorded for the year by Bunny is?
Q3. ABC Company delivered 150 portable gas stoves to DEF Company on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that ABC Company would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee ordered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How much is the amount remitted by DEF to ABC for the first month?
Q4. Medlab Inc. Consigned 4,800 medical equipment costing P90 and retailing for P3,000 each to ACC Co. Freight cost of P4,800 was paid as freight expenses by the consignor. After a month, Medlab received P213,030 in full settlement of the balance due. The consignor deducted a commission of P600 for each equipment sold, P270 for delivery expense and P300 for advertising expense. How many medical equipment were sold?
Q5. AAA Company signed a contract charging a customer P600,000 to change the windows of a customer's house. The contract includes costs of the materials labor. The company would charge P250,000 for materials if sold separately and P500,000 for labor if the customer will purchase the needed materials. How much of the transaction price would the company allocate to its performance obligation to provide the needed services to the customer?