what si the amount of revenue from long-term contract for the year ended December 31,2022?what is the amount of costs of construction for the year ended December 31,2022?what is the amount of gross profit/gross loss, respectively to be reported by DMCI Company for the year ended December 31, 2022? .. DMCI Company is one of the leading construction firms in the country. OnJanuary 1, 2021, it entered into a long-term construction contract with a fixed contractprice of P4,500,000. The construction started on July 1, 2021 and ended on October 31,2023. The following costs were provided by the chief accountant of DMCI Company:20212023Construction costs incurred to date P1,000,000 P2,916,000 P4,556,250P-0-2022Estimated costs to complete as of P3,000,000 P1,640,250the end of the yearAssuming the outcome of the construction can be estimated reliably and the companydecided to employ cost-to-cost method

Revenue recognition: Revenue recognition is the principle that provides specific conditions under…

what si the amount of revenue from long-term contract for the year ended December 31,2022? what is the amount of costs of construction for the year ended December 31,2022? what is the amount of gross profit/gross loss, respectively to be reported by DMCI Company for the year ended December 31, 2022?

what si the amount of revenue from long-term contract for the year ended December 31,2022? what is the amount of costs of construction for the year ended December 31,2022? what is the amount of gross profit/gross loss, respectively to be reported by DMCI Company for the year ended December 31, 2022?

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 6P

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Similar questions

Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.
On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
Worksheet Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2019: The following additional information is available: (a) salaries accrued but unpaid total 250; (b) the 80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals 810 on the buildings and equipment; (d) interest accrued on the note payable totals 380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT Daniel Specialty Company for 50 per month, and KT Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals 80; (g) bad debts expense is 70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017. Required: 1. Complete the worksheet. (Round to the nearest dollar.) 2. Prepare the companys financial statements. 3. Prepare (a) adjusting and (b) closing entries in the general journal.