Solution-How this contract would appear in the statement

How this contract would appear in the statement

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Reference no: EM133145435

Question - During 2020 AF Construction Company started a construction job with a contract price of £2,500,000. The job is to be completed in 2022. Input method is used to measure the percentage of completion. AF's fiscal year ends on 31 December. The following information is available:

	2020	2021	2022
	£	£	£
Costs incurred to date	600,000	1,435,000	2,100,000
Estimated costs to complete	1,400,000	615,000	0
Progress billings during the year	300,000	1,300,000	900,000
Cash collected during the year	100,000	1,000,000	1,400,000

Required - Calculate the amount of profit (or loss) and how this contract would appear in the statement of financial position for the financial years ending 31 December 2020-2022.

Reference no: EM133145435

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How this contract would appear in the statement

Reference no: EM133145435

Reference no: EM133145435

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