User Account

All Pages

Calculate the amount of contract revenue

Assignment Help Financial Accounting
Reference no: EM133030412

Question - Sun Builder's principal activity is in construction and development of houses for the middle income group. As at 31 March 2012, the company has three uncompleted contracts, whose performance obligations are satisfied over time.

Sun calculates satisfaction of performance obligations based on costs incurred as a percentage of total costs.

CONTRACT 1 RM'000 CONTRACT 2 RM'000 CONTRACT 3 RM'000

Contract value/price 18000 20000 7500

Cost incurred as at 31/3/12 10500 13000 5800

Included in the above costs incurred are:

Materials for future work 400 200

Advance payments to subcontractors 1100 1000

Estimated costs to completion 3000 3000 3200

Required -

(a) Calculate the stage of completion of each of the contract as at 31 March 2012.

(b) Calculate the amount of contract revenue, costs, profit or loss for each contract that should be recognised in the statement of profit and loss for the financial period ended 31 March 2012.

Reference no: EM133030412

Questions Cloud

What is the incremental revenue associated : Suppose this action will increase sales to 313,500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce
Improve safety in an organizational environment : Explain effective practices that the human resources department could implement to improve safety in an organizational environment
What is identified role : What is your identified role and how do you fulfill that while allowing clients/patients to have their own personal beliefs?
Identify different methods used in needs assessment : Identify different methods used in needs assessment and identify the advantages and disadvantages of each method.
Calculate the amount of contract revenue : Calculate the amount of contract revenue, costs, profit or loss for each contract that should be recognised in the statement of profit and loss
Generational abuse and welfare dependency : What are the impacts of generational abuse and welfare dependency? Why is it important to consider this issue in case management?
What is the human capital value add : What is the Human Capital Value Add for our company? In other words, what is the financial impact of the employees on the organisation?
How should tremblay deal with the proposed data : How should Tremblay deal with the proposed data center relocation issue?
Pros and cons of the 360-degree evaluation : What are pros and cons of the "360-degree" evaluation? Many healthcare organizations are using this method. Do you have personal experience with this method (ei

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd