11 (Adapted) The following information is for Mikaela Enterprises Ltd: Jan. 31 Feb. 28 Apr. 30 P23,000 Mar. 31 Inventory at cost Inventory at LCNRV P25,000 P25,100 P29,000 24,500 17,600 20,000 29,000 22,600 24,000 35,000 17,300 26,500 40,000 Purchases for the month Sales for the month Requirements: 1. Using the above infomation, prepare a monthly income statement for the month of February, March, and April. Mikaela Enterprises Ltd. uses the indirect or allowance method. 2 Prepare the joumal entry that is needed to establish the valuation account on January 31. Also, prepare the journal entries to adjust it at the end of each month after that.
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- 7. Entity A publishes quarterly interim financial reports. Entity A’s annual depreciation for items of PPE is P120,000. At the end of the first quarter, Entity A’s inventories have a cost of P600,000 and a net realizable value of P510,000. Entity A expects that the total employee bonuses (13th month pay) that will be paid at year-end will amount to P60,000. How much is the total amount of expense to be recognized from the items described above in Entity A’s first quarter statement of profit or loss?2. A credit sale of P750 is made on June 13, term 2/10, net/30. A return of P50 is granted on June 16. The amount received as payment in full on June 23 is: a. P700 b. P650 c. P686 d. P685In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.1. Percentage of completion for 20x1 _____________2. Revenue that should be recognized in 20x1 _____________3. Realized gross profit in 20x1 _____________4. Balance of "Contract Liability" at the end of 20x1 _____________
- In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.7. Realized gross profit in 20x2 _____________8. The balance of "Contract Liability" at the end of 20x2 _____________9. Revenue that should be recognized in 20x3 _____________10. Realized gross profit in 20x3In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.4. Balance of "Contract Liability" at the end of 20x1 _____________5. Percentage of completion for 20x2 _____________6. Revenue that should be recognized in 20x2 _____________9.Tito Company entered into an assignment arrangement with Easy Bank whereby the assignee would advance 80% of all accounts assigned less P2,000 service charge. During the year, P400,000 of accounts receivable were assigned; P250,000 collections were made on these assigned accounts which were remitted to Easy Bank to apply first to P3,200 interest and the balance to principal. Sales returns and allowances on assigned accounts amounted to P5,000.After considering all of the foregoing transactions, how much is Tito Company's equity in assigned accounts disclosed in the notes to the financial statements?
- E12. WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: 2020 2021 Costs incurred during the year $658,560 $1,408,000 Estimated costs to complete, as of December 31 909,440 –0– Billings during the year 421,000 2,187,000 Collections during the year 348,000 1,527,000 (a) What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ (b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized? Revenue recognized in 2020 $ Revenue recognized in 2021 $E12. WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow: 2020 2021 Costs incurred during the year $658,560 $1,408,000 Estimated costs to complete, as of December 31 909,440 –0– Billings during the year 421,000 2,187,000 Collections during the year 348,000 1,527,000 (a) What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ 918,540 Revenue recognized in 2021 $ 1,268,460 (b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized? Revenue recognized in 2020 $ 0 Revenue recognized in 2021 $ 2,187,000 (c)Prepare a complete set of journal entries for 2020 (using the…Exercise 18-36 Marigold Construction Company uses the percentage-of-completion method of accounting. In 2020, Marigold began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2020 2021 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 –0– Billings during the year 413,000 2,234,000 Collections during the year 351,000 1,530,000 Your answer is incorrect. Try again. What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue recognized in 2020 $ Revenue recognized in 2021 $ SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is correct. Assuming the same facts as those above except that Marigold uses the completed-contract method…
- 2. ABC Co.’s records show the following information: 20x1 20x2Deferred gross profit (adjusted ending balances):from 20x1 sale 240,000 160,000from 20x2 sale 324,000Gross profit rates based on sales 40% 45%Cash collections from:20x1 sales 400,000 200,00020x2 sales 480,000 How much is the total installment receivable on December 31, 20x2?32. If Adel allows a 2 percent cash discount if collected in the month of sale, it isexpected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the newpercentages?a. P17,500b. P18,500c. P16,290d. P20,00073. A company entered into a contract on 1 January 20X5 to build a factory. The contract price was GHS2.8m. At 31 December 20X5 the contract was certified as 35% complete. Costs incurred during the year were GHS740,000 and costs to complete are estimated at GHS1.4m. GHS700,000 has been billed to the customer but not yet paid. What amount will be included in receivables for this contract in the statement of financial position as at 31 December 20X5? A. GHS271,000 due from customers B. GHS509,000 due from customers C. GHS271,000 due to customers D. GHS509,000 due to customers