Explain how you would treat and record each of the following cost information when preparing the contract account for a construction contract of H.Young ltd a construction company that has been operating in Kenya for the last three years. The company purchased building materials including cement,sand,paint,roofing tiles and other material at a cost of Shs 250,000,000 Some of the purchased building materials were defective and were returned to the supplier.These materials had been purchased at a cost of Shs 23,000,000. A huge fire at the contract site destroyed building materials valued at Shs 35,000,000
Explain how you would treat and record each of the following cost information when preparing the contract account for a construction contract of H.Young ltd a construction company that has been operating in Kenya for the last three years. The company purchased building materials including cement,sand,paint,roofing tiles and other material at a cost of Shs 250,000,000 Some of the purchased building materials were defective and were returned to the supplier.These materials had been purchased at a cost of Shs 23,000,000. A huge fire at the contract site destroyed building materials valued at Shs 35,000,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 10P
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- Explain how you would treat and record each of the following cost information when preparing the contract account for a construction contract of H.Young ltd a construction company that has been operating in Kenya for the last three years.
- The company purchased building materials including cement,sand,paint,roofing tiles and other material at a cost of Shs 250,000,000
- Some of the purchased building materials were defective and were returned to the supplier.These materials had been purchased at a cost of Shs 23,000,000.
- A huge fire at the contract site destroyed building materials valued at Shs 35,000,000
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