User Account

All Pages

What amount of revenue is recognized on the contract

Assignment Help Accounting Basics
Reference no: EM132779909

On July 1, 20x1, Contractor Co. enters into a contract with a customer for the construction of a building. At contract inception, Contractor Co. assesses the contract in accordance with the principles of PFRS 15 and concludes that it has a single performance obligation that is satisfied over time. Contractor Co. then determines that the appropriate measure of its progress on the contract is input method based on costs incurred.

Information on the contract is shown below:

Contract price 600,000
Contract costs incurred during 20x1 120,000
Estimated remaining costs as of Dec. 31, 20x1 240,000
Billings to the customer during 20x1 180,000
Collections on billings during 20x1 60,000

Problem 1: What amount of revenue is recognized on the contract in 20x1?

a. 240,000
b. 220,000
c. 180,000
d. 200,000

Reference no: EM132779909

Questions Cloud

Did jose dizon violate the revised code of ethics : Jose Dizon, CPA was engaged to audit financial statements of Victory Corporation. Dizon had half-completed the audit when he has a dispute with management.
Find out holding period return on investment : Nine months ago, you bought 500 shares of a mutual fund at an offering price of $28 per share. The fund charges a front-end load of 3.5 percent
How much money will be in the account at the end : How much money will be in the account at the end of that time period? For the next 4 years, you decide to place $4,990 in equal year-end deposits
Accessing the financial landscape of a company mean : What does accessing the financial landscape of a company mean?
What amount of revenue is recognized on the contract : What amount of revenue is recognized on the contract in 20x1? On July 1, 20x1, Contractor Co. enters into a contract with a customer for the construction
What happens if the structure increases in value : Aden Motels Inc. owns a motel that it had purchased on January 1, 2020 for $1.5 Million cash and is accounted for in a separate account, classified.
Calculate? caraway stockholders equity : The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor
How much is the cumulative catch-up adjustment to revenue : How much is the cumulative catch-up adjustment to revenue recognized on the date of contract modification? (round-off percentage of completion)
What did the organization do really well : How did what you see in practice compare to what you learned from your readings and discussions? What were the similarities and differences?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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