Reference no: EM132940116
BUILDERS Construction is constructing an office building under contract. The contract calls for progress billings and payments of P1,240,000 each quarter. The total contract price is P14,880,000 and the company estimates total costs of P14,200,000. The company estimates that the building will take three years to complete and construction commences on 2022.
At December 31, 2023 BUILDERS Construction estimates that it is 75% complete with their current construction project; however, the estimate of total costs to be incurred has risen to P14,400,000 due to unanticipated price increases.
Problem 1: How is the difference, debit/(credit) between the construction in progress and the billings on construction in progress reported? (Solutions must be in good accounting form)
A. (3,380,000)
B. 1,240,000
C. 880,000
D. (1,240,000)
Problem 2: If the building was 30% completed by the end of 2022, what is the total amount of expenses to be reported for 2023? (Solutions must be in good accounting form)
A. 10,800,000
B. 6,540,000
C. 6,390,000
D. 6,300,000
|
Explain types of training
: 1. Explain TWO (2) types of training which are most appropriate to be provided to the employees who will be affected with this inter-organisational arrangement.
|
|
Find how much value did add to the house
: Find How much value did you add to the house? You, a finance graduate, bought a run-down house for $450,000 and spend another $75,000 on painters.
|
|
Which project should be chosen if npv method of project
: The required rate of return for both projects is 10%, which project should be chosen if NPV method of project evaluation is used?
|
|
Establish the system perspective
: B.. Establish using the System's Perspective what the management may be doing wrong and what could be the consequence.
|
|
What is the total amount of expenses to be reported
: If the building was 30% completed by the end of 2022, what is the total amount of expenses to be reported for 2023? (Solutions must be in good)
|
|
Identity the areas of concern
: a) Identity the areas of concern raised in the national labour force survey 2016/2017 of Uganda that you would address in relation to;
|
|
Compute the discount rates for each project
: Compute the discount rates for each project for which their respective NPV is zero. based on this discount rate, which project should be accepted?
|
|
How much did james spend in renovating the house
: How much did he spend in renovating the house? James find that the market value of his renovated house is $600,000. He also find that renovation added $75,000.
|
|
How is the balance sheet are affected on the date
: How is the balance sheet, income statement, and statement of cash flows are affected on the date of the transaction paid (1st September 2020)
|