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2018 2019 2020 Cost during the year 3500000 4000000 2500000 Estimated Future cost 6500000 2500000 0 Billings during the year 5,000,000 4,000,000 3,000,000 Cash collected
2018 2019 2020 Cost during the year 3500000 4000000 2500000 Estimated Future cost 6500000 2500000 0 Billings during the year 5,000,000 4,000,000 3,000,000 Cash collected during the year 4,000,000 3,500,000 4,500,000 Company began work on a contract in 2016 that generates revenue AED 12,000,000 & cost AED 10,000,000 and which is due to be completed in 2020. 1) Calculate the percentage of completion for 2018, 2019 and 2020 (9 marks) 2) Record all necessary entries for 2018 (18 marks) 3) What amount of total gross profit for the whole contract. (5 marks) 4) What amount of gross profit recognized in 2019. (6 marks) 5) Record the transaction to close the accounts when the project is delivered to the customer in 2018. (2 marks
2018
2019
2020
Cost during the year
3500000
4000000
2500000
Estimated Future cost
6500000
2500000
0
Billings during the year
5,000,000
4,000,000
3,000,000
Cash collected during the year
4,000,000
3,500,000
4,500,000
Company began work on a contract in 2016 that generates revenue AED 12,000,000 & cost AED 10,000,000 and which is due to be completed in 2020.
1) Calculate the percentage of completion for 2018, 2019 and 2020 (9 marks)
2) Record all necessary entries for 2018 (18 marks)
3) What amount of total gross profit for the whole contract. (5 marks)
4) What amount of gross profit recognized in 2019. (6 marks)
5) Record the transaction to close the accounts when the project is delivered to the customer in 2018. (2 marks
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