Question 1
Accounting for Construction Contracts 10 Marks XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a contract price of $40 million. XYZ Ltd estimates that construction costs will be as follows:
Year Ending Cost
30 June 2016 $10 000 000
30 June 2017 $16 000 000
30 June 2018 $ 6 000 000
$32 000 000
The contract provides that ABC will make payments on 30 June of each year as follows:
2016 - $8 000 000
2017 - $20 000 000
2018- $12 000 000
$40 000 000
XYZ now estimates at the beginning of the 2017 financial year that construction costs will be as follows:
Year Ending Cost
30 June 2016 $10 000 000
30 June 2017 $21 000 000
30 June 2018 $15 000 000
$46 000 000
Required:
Calculate:
a) Percentage of completion for each of the three years
b) Revenue to be recognised in each of the three years
c) Gross profit/loss to be recognised in each of the three years
Answers: 1
Arts, 22.06.2019 22:30
Amuseum displays an ancient aztec calendar. this object holds cultural value because
Answers: 1
Arts, 24.06.2019 07:00
Read the excerpt from the building of manhattan. the heater cranked the blower handle to force air up through the fire and heat the rivets in the furiously burning bed of coals. he knew how hot the rivets were by the way their color changed. cherry-red rivets were 1,000 to 1,950 degrees fahrenheit. at the right moment he grabbed one in his tongs and tossed it to the catcher. which phrase cannot be changed in a paraphrase of this text? “the furiously burning bed of coals” “by the way their color changed” “1,000 to 1,950 degrees fahrenheit” “force air up through the fire and heat”
Answers: 2
Question 1
Accounting for Construction Contracts 10 Marks XYZ Ltd signs a contract on 30 June 2015,...
Mathematics, 02.05.2021 14:00
Mathematics, 02.05.2021 14:00
English, 02.05.2021 14:00
History, 02.05.2021 14:00
Mathematics, 02.05.2021 14:00
Physics, 02.05.2021 14:00
History, 02.05.2021 14:00
History, 02.05.2021 14:00
English, 02.05.2021 14:00
Mathematics, 02.05.2021 14:00
Chemistry, 02.05.2021 14:00
Mathematics, 02.05.2021 14:00
Mathematics, 02.05.2021 14:00
Mathematics, 02.05.2021 14:00
English, 02.05.2021 14:00