Reference no: EM132600668
On 1 October 20X0 Monna entered into a construction contract that was expected to take 27 months and therefore be completed on 31 December 20X2. Details of the contract are:
Agreed contract price RM12,500
Estimated total cost of contract (excluding plant) RM 5,500
Plant for use on the contract was purchased on 1 January 20X1 (three months into the contract as it was not required at the start) at a cost of $8 million. The plant has a four-year life and after two years, when the contract is complete, it will be transferred to another contract at its carrying amount. Annual depreciation is calculated using the straight-line method (assuming a nil residual value) and charged to the contract on a monthly basis at 1/12 of the annual charge.
The correctly reported profit or loss results for the contract for the year ended 31 March 20X1 were:
RM'000
Revenue recognized 3,500
Contract expenses recognized (2,660)
Profit recognized 840
Details of the progress of the contract at 31 March 20X2 are:
RM'000
Contract costs incurred to date (excluding depreciation) 4,800
Agreed value of work completed and billed to date 8,125
Total cash received to date (payments on account) 7,725
The percentage of completion is calculated as the agreed value of work completed as a percentage of the agreed contract price.
Required:
Question a. Prepare extracts of the statement of comprehensive income for the year ended 31 March 20x2.
Question b. Prepare extracts of the statement of financial position as at 31 March 20x2. (Show all necessary workings)
|
Major steps in the implementation process
: List the major steps in the implementation process and describe them briefly using the diagram. Why is implementation an important subject?
|
|
What is the gain on the sale of the bonds
: On December 31, 2018, the bonds were sold for P3,500,000 plus accrued interest. What is the gain on the sale of the bonds
|
|
Find how much is the target cost per unit
: Products on the market suggests a price of $123.00 per unit. The company requires a profit of 0.30 of selling price. How much is the target cost per unit?
|
|
Consequences to organization you would emphasize
: When a user does not follow security procedures, what are two consequences to the organization you would emphasize? Why?
|
|
Make extracts of the statement of comprehensive income
: Prepare extracts of the statement of comprehensive income for the year ended 31 March 20x2. Contract costs incurred to date (excluding depreciation) 4,800
|
|
Explain the difference between likelihood and probability
: What is the time and space complexity of fuzzy c-means? Explain the difference between likelihood and probability.
|
|
What is the equity value of Pulpless from Mono perspective
: If the value to Mondo of pulpless's incremental operations is $117, and Mondo has $32 of debt, what is the equity value of Pulpless from Mono's perspective
|
|
Find what price should be charged
: Fixed cost at a volume of $50,000 units. If the company marks up total cos by 0.46, what price should be charged if 58,000 units are expected to be sold?
|
|
Advice the supplier
: Supplier discovered that he would have to source for the patties at a cost of RM700,000. The supplier could not get out from the contract. Advice the supplier.
|